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

By Polly Fleeting ·

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 - page last updated September 19, 2020

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.

  • Thumbnail icon for CUA
    mozo-experts-choice-2020
    CUA Low Rate Credit Card

    11.99% p.a.

    0% p.a. for 13 months and then 21.74% p.a.

    $49 $0 in the first year

      Compare
    Details
  • Thumbnail icon for St.George
    St.George Vertigo

    0% p.a. for 7 months then 13.99% p.a.

    0% p.a. for 22 months and then 21.49% p.a. (1.50% balance transfer fee)

    $55 $0 in the first year

      Compare
    Details
  • Hot Deal$200 Cashback Offer (T&Cs apply)

    Thumbnail icon for Westpac
    Westpac Low Rate

    13.74% p.a.

    0% p.a. for 20 months and then 21.49% p.a. (1.00% balance transfer fee)

    $59

      Compare
    Details
  • Thumbnail icon for ME
    mozo-experts-choice-2019
    ME frank Credit Card

    11.99% p.a.

    No current offer

    $0

      Compare
    Details
  • Thumbnail icon for NAB
    NAB StraightUp Card

    $10/month - $1,000 Credit Limit

    0% p.a.

    No current offer

    $120 $10/month - waived if no spend & no balance owing

      Compare
    Details

^See information about the Mozo Experts Choice Credit Cards Awards

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Polly Fleeting
Polly Fleeting
Money writer

Polly Fleeting is a personal finance writer here at Mozo, specialising in loans and credit cards. Her work is aimed at helping people find ways to make smart product choices, reduce debt and get more for their hard-earned dollars. Polly has a degree in Journalism from the University of Technology, Sydney.