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 - last updated 27 November 2021

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure
  • Apply By 28 Feb 2022
    Bendigo Bank Low Rate Credit Card

    0% p.a. on purchases for up to 18 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    0% p.a. for 18 months then 11.99% p.a.
    No current offer
    $45
    -
    Details
  • humm90 Mastercard

    With up to 110 days interest free on your spending, this card is pretty unique in the market, and great for managing your daily spend. Plus, no foreign transaction fees overseas or online. Plus $400 cash back when you spend $4,000 on eligible purchases within first 120 days (T&Cs apply).

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    23.99% p.a.
    No current offer
    $99 $0 in the first year
    -
    Details
  • Latitude Gem Visa

    Enjoy now. Pay later with Latitude. 0% interest for 6 months (purchases over $250). 0% interest payment plans at selected retailers. Up to 55 interest free days. Apply in less than 10 minutes. Must be over 18 to apply.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    19.95% p.a.
    No current offer
    $107 $8.95 monthly fee waived if outstanding balance less than $10
    -
    Details
  • Apply By 30 Nov 2021
    Mozo Expert Choice Badge
    American Express Explorer® Credit Card

    Receive 240,000 Bonus Membership Rewards Points when you apply online by 30 November 2021, are approved and spend $3,000 on your new Card within the first 3 months. T&Cs apply. New Card Members only.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    20.74% p.a.
    No current offer
    $395
    Membership Rewards
    Details
  • HSBC Platinum Credit Card

    0%p.a. on balance transfers for 36 months with no balance transfer fee. Terms and Conditions apply. Mozo Experts Choice Premium Rewards and Balance Transfer Platinum Credit Card Winner 2020.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    19.99% p.a.
    0% p.a. for 36 months and then 21.99% p.a.
    $129 $29 in the first year
    Rewards Plus
    Details
  • NAB StraightUp Card

    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
    -
    Details
  • St.George No Annual Fee

    0% p.a. for 12 months on APR requested at card application. The special promotional purchase rate applies from card approval, after the promotional period, the rate will switch to the variable purchase rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends February 24th 2022.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    0% p.a. for 12 months then 20.74% p.a.
    2.99% p.a. for 15 months and then 21.49% p.a.
    $0
    -
    Details
  • Mozo Expert Choice Badge
    American Express Low Rate Credit Card

    Competitive low rate with $0 Annual Fee. Offers purchase and refund protection. Customers need an annual income of $50,000 or more.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    8.99% p.a.
    No current offer
    $0
    -
    Details
  • Apply By 24 Feb 2022
    St.George Vertigo

    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. Offer ends February 24th 2022.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    0% p.a. for 6 months then 13.99% p.a.
    0% p.a. for 32 months and then 21.49% p.a.
    $55 $0 in the first year
    -
    Details
  • Virgin Money Low Rate Card

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    11.99% p.a.
    0% p.a. for 15 months and then 21.69% p.a. (1.00% balance transfer fee)
    $99
    -
    Details
  • Mozo Expert Choice Badge
    American Express Cashback Credit Card

    Get 5% Bonus Cashback in the first 3 months and no monthly fee for the first 12 months. Additional 1.5% cashback with American Express Shop Small Campaign (conditions apply). Complimentary perks and insurances. Eligibility criteria and T&Cs apply.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    20.74% p.a.
    No current offer
    $120 $0 in the first year
    Cashback Rewards
    Details
  • 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
    Rewards program
    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
    -
    Details
  • Apply By 24 Feb 2022
    Westpac Altitude Platinum

    Earn up to 75,000 bonus Qantas Points ($4k min. spend in the first 90 days on eligible purchases). 0% p.a. for 24 months on balance transfers requested at card application. 1% BT fee applies. $49 First Year Annual fee and Rewards fee. New cards only. Offer ends February 24th 2022. T&C's and exclusions apply.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    20.49% p.a.
    0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)
    $200 $99 in the first year
    Qantas Frequent Flyer
    Details

^See information about the Mozo Experts Choice Credit Card Awards

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