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 19 March 2024

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure
  • NAB Low Rate Card - Balance Transfer Offer

    Spend with confidence with a low 13.49% p.a. variable purchase rate and 0% p.a. interest on balance transfers for the first 28 months (T&Cs apply). 2% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget better when you make minimum repayments. Minimum credit limit $1,000. No annual fee for the first year (usually $59).

    Purchase rate
    13.49% p.a.
    Balance transfer rate
    0% p.a. for 28 months and then 21.74% p.a. (2.00% balance transfer fee)
    Annual fee
    $59 $0 in the first year
    Rewards program
    -
    Compare
    Details
  • American Express Platinum Edge Credit Card

    Enjoy $0 Annual Card Fee (usually $195) in the first year when you apply online and are approved. T&Cs apply. New Card Members only. Offer subject to change without notice.

    Purchase rate
    23.99% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $195 $0 in the first year
    Rewards program
    Membership Rewards
    Compare
    Details
  • Apply By 2 Apr 2024
    American Express Qantas Ultimate Card

    Receive 100,000 bonus Qantas Points when you apply online by 2 April 2024 , are approved, and spend $3,000 on eligible purchases on your new Qantas American Express Ultimate Card within the first 3 months. T&Cs apply. Available to new American Express Card Members only.

    Purchase rate
    23.99% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $450
    Rewards program
    Qantas Frequent Flyer
    Compare
    Details
  • American Express Explorer® Credit Card

    Receive 50,000 bonus membership rewards points when you apply online, are approved, and spend $4,000 on eligible purchases on your new card within the first 3 months (T&Cs apply). New Card Members only. Complimentary domestic & international Travel Insurance (T&Cs apply). Up to 55 days interest free on purchases. $395 annual fee.

    Purchase rate
    23.99% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $395
    Rewards program
    Membership Rewards
    Compare
    Details
  • G&C Mutual Bank Platinum Visa Credit Card

    Receive 50,000 bonus Qantas Points when you apply, are approved, and spend $5,000 on eligible purchases on your new G&C Mutual Bank Platinum Visa Credit Card within 90 days. T&Cs apply. Available to new G&C Mutual Bank Card Members only. Earn 10,000 bonus Qantas Points annually. T&Cs apply. Access Platinum Visa Concierge. Add an additional cardholder at no extra cost.

    Purchase rate
    19.99% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $299
    Rewards program
    Qantas Frequent Flyer
    Compare
    Details
  • Apply By 15 May 2024
    American Express Velocity Platinum Card

    Earn 100,000 bonus Velocity Points when you apply online by 15 May 2024, are approved, and spend $3,000 on eligible purchases on your new American Express Velocity Platinum Card within the first 3 months. T&Cs apply. Available to new American Express Card Members only.

    Purchase rate
    23.99% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $375
    Rewards program
    Velocity Frequent Flyer
    Compare
    Details

^See information about the Mozo Experts Choice Credit Card 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.