Aussies could save a $2.1 billion by switching credit cards

By Ceyda Erem ·
switching-credit-cards

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 - rates updated daily

    Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.
    • Apply By 31 October 2021
      placeholder
      Bendigo Bank Low Rate Credit Card

      0% p.a. on purchases for 12 months (Reverts to 11.99% p.a). Also 0% balance transfer for 12 months. Low annual fee of $45 and no fees for additional cardholders.

      Purchase rate
      Balance transfer rate
      Annual fee
      0% p.a. for 12 months then 11.99% p.a.
      0% p.a. for 12 months and then 11.99% p.a. (2.00% balance transfer fee)
      $45
      Go to site
      Details
    • Apply By 30 November 2021
      placeholder
      St.George Vertigo - Cashback Offer

      $300 cashback when you take out a new Vertigo Credit Card and spend $4k on eligible purchases within 120 days of the new card approval. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply. Offer ends November 30th 2021.

      Purchase rate
      Balance transfer rate
      Annual fee
      13.99% p.a.
      6.99% p.a. for 12 months and then 21.49% p.a.
      $55 $0 in the first year
      Go to site
      Details
    • placeholder
      NAB StraightUp Card

      $10/month - $1,000 Credit Limit

      Pay no interest and no late payment fees, just a $10 monthly fee for a $1,000 credit limit. Plus, if you don't make any purchases and have an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed. Also pay no foreign currency fees when you shop online or overseas. Mozo Experts Choice Credit Card Innovation Winner 2020^.

      Purchase rate
      Balance transfer rate
      Annual fee
      0% p.a.
      No current offer
      $120 $10/month - waived if no spend & no balance owing
      Go to site
      Details
    • Apply By 30 November 2021
      placeholder
      Bank of Melbourne Vertigo

      0% p.a. for 30 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply. Offer ends November 30th 2021.

      Purchase rate
      Balance transfer rate
      Annual fee
      13.99% p.a.
      0% p.a. for 30 months and then 21.49% p.a.
      $55 $0 in the first year
      Go to site
      Details
    • placeholder
      NAB Low Rate Card

      0% p.a. interest on balance transfers for the first 32 months, plus a low ongoing purchase rate after that means you can spend with confidence. There's also up to 55 interest free days on purchases to help you manage your budget better.

      Purchase rate
      Balance transfer rate
      Annual fee
      12.99% p.a.
      0% p.a. for 32 months and then 21.74% p.a. (0% balance transfer fee)
      $59 $0 in the first year
      Go to site
      Details

    ^See information about the Mozo Experts Choice Credit Card Awards

    Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

    While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.