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 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
  • Apply By 3 May 2021
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    Mozo Experts Choice 2020
    American Express Explorer® Credit Card

    Receive 90,000 Bonus Membership Rewards Points and get $300 back when you apply online by 3 May 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
    Go to site
    Details
  • placeholder
    ME frank Credit Card

    Meet Frank, a low rate credit card with up to 55 interest free days and no annual fee. If simple, hassle free spending is your goal, you and Frank might be a match made in heaven.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    11.99% p.a.
    No current offer
    $0
    -
    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
  • placeholder
    NAB Qantas Rewards Signature Card

    NABs fastest way to earn Qantas Points. 110,000 bonus Qantas Points when you spend $3,000 on everyday purchases within 60 days of account opening and keep the card open for 12 months. Access to 6 complimentary insurances when you make eligible purchases.

    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)
    $395 $295 in the first year
    Qantas Frequent Flyer
    Go to site
    Details
  • placeholder
    Bank of Melbourne 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
  • placeholder
    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 September 28th 2021.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    0% p.a. for 12 months then 20.74% p.a.
    6.99% p.a. for 12 months and then 21.49% p.a.
    $0
    -
    Go to site
    Details
  • Apply By 7 September 2021
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    Westpac Altitude Platinum

    Earn up to 60,000 bonus Qantas Points ($3k min. spend in the first 90 days on eligible purchases). Enjoy up to 45 days interest free with a 0% balance transfer for 18 months (rate then reverts to 21.49% after). 1% BT fee. $99 + $50 Annual Qantas Rewards card fee for the first year.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    20.49% p.a.
    0% p.a. for 18 months and then 21.49% p.a. (1.00% balance transfer fee)
    $200 $149 in the first year
    Qantas Frequent Flyer
    Go to site
    Details
  • placeholder
    ING Orange One Low Rate Credit Card

    With a low interest rate, no annual fee and, if per account, you meet the eligibility criteria, no ING International Transaction Fees when you shop overseas or online. Automatic repayments from eligible ING accounts.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    11.99% p.a.
    No current offer
    $0
    -
    Go to site
    Details
  • placeholder
    BankSA 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
  • placeholder
    ING Orange One Rewards Platinum Credit Card

    Get up to $30 a month cashback on your spend per account, and, if you meet the eligibility criteria, no ING International Transaction Fees when you shop overseas or online. Automatic repayments from eligible ING accounts.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    16.99% p.a.
    No current offer
    $149
    Cashback Rewards
    Go to site
    Details

^See information about the Mozo Experts Choice Credit Cards Awards

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