Let’s give credit card rates the chop, says VIC Treasurer

vic-credit-card

Last week Victorian Treasurer Tim Pallas threw down the gauntlet to Federal Treasurer Josh Frydenberg asking for credit card interest rates to be slashed. 

He argued that although the cost of borrowing money has plummeted over the past few years, credit card interest rates have remained the same. 

“That is unfair, it is unreasonable, and it’s unconscionable, and it has to stop,” he said.“The Commonwealth needs to step up.”

To get credit card interest rates under control, Pallas has also demanded a review into how rates are set and regulated within Australia. 

It might not be that much of a bold statement either, as credit card rates have barely moved, despite the fact that the official cash rate currently sits at 0.1% 

Mozo research from November last year revealed that by failing to pass on 4.40% in RBA rate cuts over the past eight years, credit card providers have profited an eye-watering $6.4 billion. 

According to Pallas, the move to reduce credit card interest rates would help the banks “re-establish their credibility” with customers. 

While it’s unclear whether this idea will come to fruition, credit card holders can take action now against their card’s interest rate by making the switch to a better deal. 

According to the Mozo database, the average credit card rate is 16.87%, while the lowest sits at 7.49%, so there are some decent savings to be made by shopping around.

How to switch credit cards in four steps

If you believe you could be getting a better deal on your credit card, then you might be thinking about switching. The good news is, switching out your plastic isn’t that much of a hassle. In fact, it can be done with four simple steps.

  • Map out your likes and dislikes. Although this might seem silly, understanding what you want and don’t want in your next credit card is essential and will help narrow down your search once you start shopping around. This could include the interest rate, annual fee or a rewards program. 
  • Get comparing! The next step is to head on over to Mozo’s credit card comparison tool to start your search. With our tool, you could find the right option for you, as there are more than 200 credit cards in our database and you'll have the ability to filter your preferences. 
  • Start the application process. Once you’ve found your credit card match, you’ll then need to submit an application for the new card and await approval. How your current balance gets moved across onto the new card will depend on the provider, as some may take care of this for you. 
  • Double-check billing details. If you’ve used your old credit card to pay for regular bills and other expenses, make sure you change the billing details to avoid defaulting on payments.

Ready to start your search? Make your next stop our credit card comparison tool! Or if you’d like more information on switching credit cards, have a read of our guide.

Compare credit cards - rates updated daily

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.
  • 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
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  • 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 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
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    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.
    -
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    Details
  • Apply By 30 November 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. New Cards only. Offer ends November 30th 2021. T&C's and exclusions apply.

    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
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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
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    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
  • Hot DealEnjoy invitations to exclusive Card Member sales previews, shopping nights and events.
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    David Jones American Express Card

    Receive 25,000 Qantas Points when you apply online by 28 September 2021, are approved and spend $1,500 at locations excluding David Jones on your new Card within the first three months. Available to new David Jones American Express Card Members only.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    0% p.a. for 6 months then 20.74% p.a.
    No current offer
    $99
    Qantas Frequent Flyer
    Go to site
    Details
  • Apply By 30 November 2021
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    Westpac Altitude Platinum

    Earn up to 130,000 bonus Altitude Points ($3k min. spend in the first 90 days on eligible purchases). 0% p.a. for 22 months on balance transfers requested at card application. 1% BT fee applies (rate reverts to the variable cash advance rate after). Discounted annual card fee of $49 for the first year ($150 thereafter). New Cards only. Offer ends November 30th 2021. T&C's and exclusions apply.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    20.49% p.a.
    0% p.a. for 22 months and then 21.49% p.a. (1.00% balance transfer fee)
    $150 $49 in the first year
    Altitude Rewards
    Go to site
    Details
  • placeholder
    NAB Qantas Rewards Premium Card

    65,000 bonus Qantas Points when you spend $2,500 within 60 days (T&Cs apply).

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    19.99% p.a.
    0% p.a. for 6 months and then 21.74% p.a. (2.00% balance transfer fee)
    $250
    Qantas Frequent Flyer
    Go to site
    Details
  • placeholder
    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
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2020
    American Express Qantas Discovery Card

    Receive up to 1.75 Qantas Points for every $1 spent on Card purchases (T&Cs apply). No annual fee for the life of the card. T&C’s apply. Mozo Experts Choice Qantas Frequent Flyer Credit Card Winner 2020.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    20.74% p.a.
    No current offer
    $0
    Qantas Frequent Flyer
    Go to site
    Details
  • Apply By 30 November 2021
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    St.George Vertigo

    0% p.a. for 30 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 November 30th 2021.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    13.99% p.a.
    0% p.a. for 30 months and then 21.49% p.a.
    $55 $0 in the first year
    -
    Go to site
    Details
  • Apply By 31 August 2021
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    Mozo Experts Choice 2020
    American Express Velocity Platinum Card

    Receive 120,000 bonus Velocity Points and 120 Status Credits when you apply online by 31 August 2021, are approved and spend $4,500 on your new Card within the first 3 months. New Card Members Only. Enjoy a complimentary domestic return flight with Virgin Australia to selected cities, each year after your first card spend.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    20.74% p.a.
    No current offer
    $375
    Velocity Frequent Flyer
    Go to site
    Details
  • Apply By 30 November 2021
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    Bank of Melbourne 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
  • Apply By 28 September 2021
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    David Jones American Express Platinum Card

    Earn 70,000 Membership Reward Points when you apply online by 28 September 2021, are approved and spend $1,500 at locations excluding David Jones on your new Card within the first three months. Available to new David Jones American Express Platinum Card Members only.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    0% p.a. for 6 months then 20.74% p.a.
    No current offer
    $295
    Membership Rewards
    Go to site
    Details

^See information about the Mozo Experts Choice Credit Card Awards

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