Credit card costing you too much? APRA & RBA say shop around

Feeling iffy about your current credit card rate and not sure whether you’re getting a good deal? Might be time to shop around. 

Last week, both Both the Reserve Bank of Australia (RBA) Governor, Philip Lowe, and Australian Prudential Regulation Authority (APRA) chair Wayne Byres attended a Senate inquiry and expressed the need for Australian consumers to opt for more competitive financial products. 

“In the Australian financial system there are actually some very well-priced products for consumers, and one of the problems we have is that people don't take them up. So I encourage people to shop around,” Lowe said.

Byres expressed a similar sentiment. 

“Perhaps the bigger issue is that many banks that have high rate interest rates also have relatively low rate ones. As with the governor, I remain puzzled as to why more people don't take those up. They are there.” 

This came after the latest March RBA figures that showed an overall national credit card debt of $41.5 billion, with $26.9 billion accruing interest. 

What should you consider when switching credit cards? 

According to the Mozo database, the average credit card interest rate is 16.88%, with the lowest sitting at 7.49% and the highest skyrocketing all the way up to 24.99%. 

So chances are you can find a better deal. 

The Customer Owned Banking Association, chief executive Michael Lawrence says that credit card holders who regularly review their current cards, are in a good position to find something more competitive. 

“Card holders can always start the process by considering a number of key questions: ‘Has my spending behaviour changed? Do I have visibility of all costs? When was the last time I assessed payments?” he said. 

“Clear awareness of your current and future needs will help you make an informed decision when faced with a variety of products.”

And while the interest rate on your credit card is extremely important to keep in mind when making the switch, here are some other credit card features to look out for as well. 

  • Fees (annual fees, foreign exchange margins and late fees)  
  • Rewards programs (frequent flyers, card provider rewards points, bonus points offers) 
  • Balance transfer offers (0% interest for a certain period of time) 
  • Other perks (interest free days, purchase protection, concierge) 

RELATED ARTICLE: 3 reasons to switch credit cards this year

Want to start your search for your new plastic? Take a look at some hot options below or jump over to our credit card comparison table for more!

Credit Cards 2020 - rates updated daily

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.
  • Apply By 2 August 2021
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    Kogan Money Black Card

    Kogan Money Black Card has no annual fee and no cap or expiry date on points. It comes with a 55 interest free days on purchases and a 0% balance transfer rate for the first 12 months. Earn up to $400 in Kogan.com Credit, $50 Credit on first eligible spend in 30 days and $350 Credit when you spend $1,500 on eligible purchases in 90 days from card approval.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    20.99% p.a.
    0% p.a. for 12 months and then 21.74% p.a.
    $0
    Kogan Rewards Points
    Go to site
    Details
  • Apply By 31 October 2021
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    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
    Rewards program
    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
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    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
    Rewards program
    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
    MoneyMe Freestyle Virtual Mastercard

    A virtual card that’s available to use instantly once approved (approvals typically within 60 minutes). Tap n Pay, transfer money to friends and get awesome credit back offers from over 1,400 stores.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    16.99% p.a.
    No current offer
    $209 $0 - $149 based on credit limit, $5/month for balances over $20.
    -
    Go to site
    Details
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    Mozo Experts Choice 2020
    American Express Qantas Ultimate Card

    Receive 55,000 bonus Qantas Points when you apply, are approved, and meet the minimum spend criteria of $3,000 in the first 3 months. T&Cs apply. Available to new Card Members only.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    20.74% p.a.
    No current offer
    $450
    Qantas Frequent Flyer
    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
    Rewards program
    0% p.a.
    No current offer
    $120 $10/month - waived if no spend & no balance owing
    -
    Go to site
    Details

^See information about the Mozo Experts Choice Credit Card Awards

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