Your credit card under the microscope: 3 ways to test if you’re getting a good deal

With many Aussies starting to feel the financial pinch of the spreading novel coronavirus, people are having to rely on their plastic to get them through. 

If you are one of them, it might be a good time to review your credit card so that pinch doesn’t turn into a full blown punch. 

Whether it’s to save on fees, switch to a lower interest rate or have the ability to extend your credit limit, there are a bunch of ways to improve what you are getting, and saving, on your credit card. 

Need a place to start? Here are three ways to test it. 

1. Analyse your annual fee

Some credit cards come with annual fees and some don’t. These fees range anywhere from $0 to $700+, so if this is something you want to save on,weigh up this fee with other features like the interest rate or rewards program on your current credit card. 

What you might consider switching to… 

  • No annual fee credit card: As the name suggests, these credit cards don’t charge an annual fee, meaning you could save hundreds of dollars each year. But just because a card has no annual fee, it doesn't always guarantee you with a lower purchase rate, which brings us to the next test. 

2. Inquire about interest rates 

Not sure if your credit card interest rate is a good one? Inquire about others! Currently in the Mozo database, interest rates start as low as 7.49%, but jump to as high as 24.99%. So when it comes to considering whether to switch from your current credit card to a new one, choosing the right rate could end up saving you money not only once a year, but for as long as you use the card.  

What you might consider switching to… 

  • Low interest credit card: If you forget to pay down your credit card balance in full from time to time (naughty), opting for a low interest credit card could be a good alternative. But like a no annual fee credit card, low interest options don’t tend to come with all the bells and whistles of a higher rate card, so you may have to bid farewell to rewards programs or complimentary insurances. 

3. Consider your credit limit

While generally speaking it’s not a great idea to bump up your credit limit, in turbulent times like these it might be worth speaking to your provider about how flexible adjusting it is. Some banks, like ANZ, Bendigo and Adelaide Bank are allowing customers to apply for emergency credit limit increases, however that’s not the case for all credit card providers so you may need to speak to your provider directly. 

Bear in mind, a credit card is not a solution to financial stress, so avoid relying on one and increasing your credit limit unless absolutely necessary. And if you do need to reach for your plastic, ensure you are economically equipped to pay it down later. 

What are other banks doing to help during the coronavirus outbreak?

  • For CommBank customers, the bank may provide credit card repayment assistance (case-by-case). 
  • Both NAB and Westpac are offering business credit card deferred repayments 
  • Macquarie Bank customers may receive a credit card interest rate reduction

RELATED ARTICLE: Guide to Australian banks’ emergency Coronavirus relief packages 

Want to compare low rate credit cards? Check out the table below or jump over to our low interest credit card comparison tool.

Low Rate Credit Cards 2020 - rates updated daily

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.
  • Apply By 30 June 2021
    placeholder
    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
    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
  • 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
    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
    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
    13.99% p.a.
    0% p.a. for 28 months and then 21.49% p.a.
    $55
    Go to site
    Details
  • Apply By 7 September 2021
    placeholder
    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
    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
    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
    11.99% p.a.
    No current offer
    $0
    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
    11.99% p.a.
    No current offer
    $0
    Go to site
    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.