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 1 August 2021
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    Bendigo Bank Low Rate Credit Card

    0% p.a. balance transfer for 24 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
    11.99% p.a.
    0% p.a. for 24 months and then 11.99% p.a. (2.00% balance transfer fee)
    $45
    -
    Go to site
    Details
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    Bankwest Breeze Mastercard

    Enjoy 0% p.a on balance transfers for 26 months (2% BT fee applies) then 10.99% thereafter. No annual fee for the first year. Limited time only. Other fees, T&Cs apply. New Mastercard Breeze customers only.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    10.99% p.a.
    0% p.a. for 26 months and then 10.99% p.a. (2.00% balance transfer fee)
    $49 $0 in the first year
    -
    Go to site
    Details
  • Apply By 7 September 2021
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    Westpac Low Rate

    Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    13.74% p.a.
    0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)
    $59 $0 in the first year
    -
    Go to site
    Details
  • placeholder
    Defence Bank Foundation Credit Card

    Defence Bank Low Rate Credit Card offers a 3.99% p.a. 6 month introductory rate on balance transfers, purchases and cash advances. Up to 55 days interest free on purchases.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    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
    -
    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 Annual fee may vary.
    -
    Go to site
    Details
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    St.George Vertigo

    0% p.a. for 28 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends September 28th 2021.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    13.99% p.a.
    0% p.a. for 28 months and then 21.49% p.a.
    $55
    -
    Go to site
    Details

^See information about the Mozo Experts Choice Credit Cards Awards

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