Aussies could save a $2.1 billion by 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
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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
$0CompareCompareNo 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
- Purchase rate
- 0% p.a. for 12 months then 18.99% p.a.
- Intro purchase rate
- 0% p.a. for 12 months
- Balance transfer rate
- 0% p.a. for 12 months and then 20.99% p.a.
- Cash advance
- 20.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
- Foreign exchange margin
- 3.30%
- Annual card fee
- $0
- Late payment fee
- $30.00
- Cash advance fee
- 2.7%, Min $2.70
Read our Mozo Review to learn more about the No Annual Fee Card
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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
$59CompareCompareLow 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
- Purchase rate
- 13.74% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 6.99% p.a. for 12 months and then 21.49% p.a. (1.00% balance transfer fee)
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 55
- Intro fee
- Foreign exchange margin
- 3.00%
- Annual card fee
- $59
- Late payment fee
- $15.00
- Cash advance fee
- 3%
Read our Mozo Review to learn more about the Low Rate - Cashback Offer
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Apply By 31 Aug 2022
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 yearCompareCompareVertigo - 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
- Purchase rate
- 13.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 32 months and then 21.49% p.a.
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.00%
- Annual card fee
- $55 $0 in the first year
- Late payment fee
- $15.00
- Cash advance fee
- 3%
Read our Mozo Review to learn more about the Vertigo - Balance Transfer Offer
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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 yearCompareCompareVirgin 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
- Purchase rate
- 20.74% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 28 months and then 20.99% p.a.
- Cash advance
- 20.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.30%
- Annual card fee
- $129 $0 in the first year
- Late payment fee
- $30.00
- Cash advance fee
- 2.7%, Min $2.70
Read our Mozo Review to learn more about the Virgin Australia Velocity Flyer Card - Balance Transfer Offer
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Mozo experts choice awards won:
- Credit Card Provider of the Year - 2021
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 offerAnnual fee
$0CompareCompareLow 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
- Purchase rate
- 8.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- No current offer
- Cash advance
- Interest free days on purchases
- 55
- Intro fee
- Foreign exchange margin
- 3.00%
- Annual card fee
- $0
- Late payment fee
- $30.00
- Cash advance fee
Read our Mozo Review to learn more about the Low Rate Credit Card
^See information about the Mozo Experts Choice Credit Card Awards
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