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 - last updated 18 September 2021

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure
  • Apply By 31 Oct 2021
    Bendigo Bank Low Rate Credit Card

    0% p.a. on purchases for up to 12 months (Reverts to 11.99% p.a). Also 0% balance transfer for up to 12 months. Low annual fee of $45 and no fees for additional cardholders.

    Purchase rate
    Balance transfer rate
    Annual fee
    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
    Details
  • Great Southern Bank Low Rate Credit Card

    0% balance transfer rate for 20 months and up to 55 interest free days. No annual fee for the first year and $49 after. Mozo Experts Choice Balance Transfer Platinum Credit Card Winner 2020^

    Purchase rate
    Balance transfer rate
    Annual fee
    11.99% p.a.
    0% p.a. for 25 months and then 21.74% p.a.
    $49 $0 in the first year
    Details
  • NAB StraightUp Card

    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
    0% p.a.
    No current offer
    $120 $10/month - waived if no spend & no balance owing
    Details
  • 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 November 30th 2021.

    Purchase rate
    Balance transfer rate
    Annual fee
    0% p.a. for 12 months then 20.74% p.a.
    2.99% p.a. for 15 months and then 21.49% p.a.
    $0
    Details
  • NAB Low Rate Card

    0% p.a. interest on balance transfers for the first 32 months, plus a low ongoing purchase rate after that means you can spend with confidence. There's also up to 55 interest free days on purchases to help you manage your budget better.

    Purchase rate
    Balance transfer rate
    Annual fee
    12.99% p.a.
    0% p.a. for 32 months and then 21.74% p.a. (0% balance transfer fee)
    $59 $0 in the first year
    Details
  • Mozo Expert Choice Badge
    American Express Low Rate Credit Card

    Competitive low rate with $0 Annual Fee. Get $100 back when you apply online by 27 October 2021, are approved and spend $1,000 on your new Card by 31 December 2021. T&Cs apply. New Card Members only. Customers need an annual income of $50,000 or more.

    Purchase rate
    Balance transfer rate
    Annual fee
    8.99% p.a.
    No current offer
    $0
    Details
  • Apply By 30 Nov 2021
    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
    13.99% p.a.
    2.99% p.a. for 15 months and then 21.49% p.a.
    $55 $0 in the first year
    Details
  • Apply By 30 Nov 2021
    Bank of Melbourne 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
    13.99% p.a.
    0% p.a. for 30 months and then 21.49% p.a.
    $55 $0 in the first year
    Details
  • Apply By 30 Nov 2021
    BankSA 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
    13.99% p.a.
    2.99% p.a. for 15 months and then 21.49% p.a.
    $55 $0 in the first year
    Details
  • Apply By 30 Nov 2021
    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
    13.99% p.a.
    2.99% p.a. for 15 months and then 21.49% p.a.
    $55 $0 in the first year
    Details
  • Apply By 30 Nov 2021
    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
    13.99% p.a.
    0% p.a. for 30 months and then 21.49% p.a.
    $55 $0 in the first year
    Details
  • Apply By 20 Oct 2021
    David Jones American Express Platinum Card

    Earn 70,000 Membership Reward Points or 35,000 Qantas Points when you apply online by 20 October 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
    0% p.a. for 6 months then 20.74% p.a.
    No current offer
    $295
    Details

^See information about the Mozo Experts Choice Credit Card Awards

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