Aussies could save a $2.1 billion by switching credit cards

By Ceyda Erem ·

If you’ve been looking for a sign to downgrade your high interest credit card, this is it. 

According to the latest Mozo research, if Aussies switched their high rate plastic to the market leading low rate card, we’d collectively have an annual saving of $2.1 billion or or an annual saving of $570* per cardholder

We found that the highest credit card interest rate in the Mozo database clocks in at a whopping 24.99%, 17.50% higher than the lowest credit card rate on the market. 

Mozo Director Kirsty Lamont believes now has never been a better time to make the switch, as many high rates come with rewards and perks that are out of the question until further notice. 

“At a time when travel linked rewards on high interest rate credit cards largely grounded due to the pandemic, getting value through this premium card category has become more challenging,” she said. 

“So if you’re carrying a balance forward on your premium credit card, you're not missing out on much at the moment by switching to a leading low rate card and reducing your monthly repayments.” 

So who currently offers the lowest credit card rate on the market? 

That would be the G&C Mutual Low Rate Visa Credit Card, featuring a purchase rate of an impressive 7.49%. 

Aussies keen to pay down debt, but slow to switch

In July, Mozo research found that while COVID-19 has reshaped the way we handle daily tasks, it’s also had a positive effect on how we think about our personal finances. 

The research revealed that 25% of Aussies are now working to eradicate their credit card debt, citing the pandemic as the financial ‘wake up call’ they needed. 

But despite this positive attitude, Lamont says the task could still be half complete. 

“Although some people have been paying down their credit card debt during the pandemic, as a nation by sticking with high interest rate cards we’re failing to bank a $160 million monthly saving,” she said. 

So if you think it’s time you made the switch to save big on your plastic, head on over to our low rate credit card comparison tool

Or if you’d like to have an award winning card in your wallet, check out all the winners for our 2020 Mozo Experts Choice Credit Card Awards.

*Source: RBA Credit and Charge Card Statistics - C1.1 - Balances Accruing InterestComparing the lowest ongoing purchase rate of 7.49% to the average purchase rate in the Mozo database, 16.37%, against the total national interest accruing credit card balance in August 2020, compounded monthly over 12 months.

    Compare low rate credit cards - last updated December 06, 2020

    Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.

    • Thumbnail icon for Bendigo Bank
      Bendigo Bank Low Rate Credit Card

      0% p.a. for 15 months then 11.99% p.a.

      No current offer

      $45

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    • Thumbnail icon for Defence Bank
      Defence Bank Foundation Credit Card

      3.99% p.a. for 6 months then 8.99% p.a.

      3.99% p.a. for 6 months and then 8.99% p.a.

      $45

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    • Thumbnail icon for CUA
      mozo-experts-choice-2020
      CUA Low Rate Credit Card

      11.99% p.a.

      0% p.a. for 20 months and then 21.74% p.a.

      $49 $0 in the first year

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    • Hot DealLimited time cashback offer

      Thumbnail icon for Westpac
      Westpac Low Rate

      13.74% p.a.

      0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)

      $59

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      Details
    • Thumbnail icon for ME
      ME frank Credit Card

      11.99% p.a.

      No current offer

      $0

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    ^See information about the Mozo Experts Choice Credit Cards Awards

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    Ceyda Erem
    Money writer

    Ceyda Erem is Mozo’s authority on Energy, as well as having broader expertise as a personal finance writer. She loves to put her researching and writing talents into stories that help our readers to make more informed financial choices, whether that’s about finding the best energy deal or writing about the latest sneaky bank tricks. Ceyda has a Bachelor of Arts (major in writing) from Macquarie University.