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

By Polly Fleeting ·

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 November 28, 2020

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.

  • Hot DealLimited time cashback offer

    Thumbnail icon for Westpac
    Westpac Low Rate

    13.74% p.a.

    0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)

    $59

    -

      Compare
    Details
  • Thumbnail icon for St.George
    mozo-experts-choice-2020
    St.George Vertigo

    13.99% p.a.

    0% p.a. for 24 months and then 21.49% p.a.

    $55 $0 in the first year

    -

      Compare
    Details
  • Thumbnail icon for CUA
    mozo-experts-choice-2020
    CUA Low Rate Credit Card

    11.99% p.a.

    0% p.a. for 20 months and then 21.74% p.a.

    $49 $0 in the first year

    -

      Compare
    Details
  • Thumbnail icon for ME
    ME frank Credit Card

    11.99% p.a.

    No current offer

    $0

    -

      Compare
    Details
  • Thumbnail icon for Defence Bank
    Defence Bank Foundation Credit Card

    3.99% p.a. for 6 months then 8.99% p.a.

    3.99% p.a. for 6 months and then 8.99% p.a.

    $45

    -

      Compare
    Details
  • Thumbnail icon for CUA
    mozo-experts-choice-2020
    CUA Platinum Credit Card

    19.99% p.a.

    0% p.a. for 20 months and then 21.74% p.a.

    $149 $0 in the first year

    CUA Platinum Rewards

      Compare
    Details

^See information about the Mozo Experts Choice Credit Cards Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.