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
Bendigo Bank Low Rate Credit Card
Bendigo Bank Low Rate Credit CardDetails
Defence Bank Foundation Credit Card
Defence Bank Foundation Credit CardDetails
CUA Low Rate Credit Card
CUA Low Rate Credit CardDetails
Westpac Low Rate
Westpac Low RateDetails
ME frank Credit Card
ME frank Credit CardDetails
^See information about the Mozo Experts Choice Credit Cards Awards
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