Aussies could save a $2.1 billion by switching credit cards

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 - last updated 13 August 2022

    Search promoted credit cards below or do a full Mozo database search . Advertiser disclosure
    • Virgin Money No Annual Fee Card

      Virgin Money No Annual Fee for the life of the card. 0% p.a. for 12 months on purchases (reverts to ongoing purchase rate) and balance transfers (reverts to cash advance rate).

      Purchase rate
      0% p.a. for 12 months then 18.99% p.a.
      Balance transfer rate
      0% p.a. for 12 months and then 20.99% p.a.
      Annual fee
      $0
      Details
    • Apply By 31 Oct 2022
      Westpac Low Rate - Cashback Offer

      Enjoy a super low rate of 13.74% with 55 days interest free plus up to $200 cashback - $50 cashback for each month you spend $1,000 or more on eligible purchases in the first 4 months from card approval. New Cards only. T&C's and exclusions apply.

      Purchase rate
      13.74% p.a.
      Balance transfer rate
      6.99% p.a. for 12 months and then 21.49% p.a. (1.00% balance transfer fee)
      Annual fee
      $59
      Details
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      St.George Vertigo - Balance Transfer Offer

      0% p.a. for 32 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.

      Purchase rate
      13.99% p.a.
      Balance transfer rate
      0% p.a. for 32 months and then 21.49% p.a.
      Annual fee
      $55 $0 in the first year
      Details
    • Virgin Money Virgin Australia Velocity Flyer Card - Balance Transfer Offer

      Get in the air with a $129 Virgin Australia Gift Voucher each year. 0% p.a. for 28 months on balance transfers.

      Purchase rate
      20.74% p.a.
      Balance transfer rate
      0% p.a. for 28 months and then 20.99% p.a.
      Annual fee
      $129 $0 in the first year
      Details
    • Mozo Expert Choice Badge
      American Express Low Rate Credit Card

      Competitive low rate with $0 Annual Fee. Offers Card Refund Cover and Card Purchase Cover. Customers need an annual income of $50,000 or more.

      Purchase rate
      8.99% p.a.
      Balance transfer rate
      No current offer
      Annual fee
      $0
      Details

    ^See information about the Mozo Experts Choice Credit Card Awards

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