Those are the findings from a poll by independent research agency fiftyfive5 commissioned by Defence Bank.
The survey of more than 1,000 people found that despite Australians planning to use their credit cards more in 2021, 57% of those surveyed don't pay much attention to their credit card interest rate, while one in two question the value of card reward programs, particularly during a pandemic.
Over a third (35%) of Australians don't know what their credit card interest rate is while four out of five of those who do know what rate they're paying are paying more than 10% p.a, with some paying over 20% p.a.
The table below displays credit cards with some of the lowest interest rates on the market, disregarding any temporary promotional offers.
Credit card | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| [Ascent Premium ] | 0 | [Receive a welcome bonus of 150, 000 Membership Rewards points when you apply online by 25 June 2024, are approved, and meet the minimum spend criteria of $5, 000 in the first 3 months. Available to new Card Members only. Receive a $450 Platinum Travel Credit each year, which can be redeemed for eligible flights, hotels, car hire or unique experiences. Transfer your points to a choice of 10 major Airline Reward Partner Programs including Qantas Frequent Flyer and Velocity Frequent Flyer Complimentary access for you and a guest to over 1, 400 Airport lounges across 140 countries and counting. Complimentary domestic and overseas travel insurance. Smartphone Screen Insurance for up to $500 for screen repairs to your Smartphone when you pay for your smartphone with your Platinum Card, either outright or on a monthly contract., ] | 0 | 0 | 6 | $product[$field["value"]] | 0 | AMEX | More details | ||||
American Express Platinum Card | |||||||||||||
| N/A | 0 | [Minimum credit limit : $1, 000 Card replacement fee (Australia) : $15 Apple Pay, Google Pay, Samsung Pay, ] | 0 | 0 | 15 | $product[$field["value"]] | 15.49 | Visa | More details | ||||
G&C Mutual Bank Low Rate Visa Credit Card | |||||||||||||
| N/A | 0 | [Low ongoing rate 0% p.a. on balance transfers for 6 months. Same low rate on retail purchases, cash advances and balance transfers. Up to 55 days interest free. Additional card available for $0. Low annual fee of $40. Minimum credit limit $500 Choose a credit limit from as little as $500 and up to $15, 000. Access to the worldwide Visa network. The option of loan protection insurance. Replacement of Visa card (within Australia) $12.50 Replacement of a Visa Card (overseas) $55 Apple Pay, Android Pay, Google Pay, Samsung Pay, ] | 0 | 0 | 25 | $product[$field["value"]] | 8.99 | Visa | More details | ||||
Community First Bank Low Rate Credit Card | |||||||||||||
| N/A | 0 | [Overseas ATM withdrawal: $5 Minimum credit limit $1, 000 Maximum credit limit: $25, 000 Annual fee waived for the first year, ] | 0 | 0 | 15 | $product[$field["value"]] | 12.99 | Visa | More details | ||||
MOVE Bank Low Rate Credit Card | |||||||||||||
| N/A | 0 | [A low $49 annual fee but you pay NO FEE if you spend a minimum of $12, 000 annually after the first year Minimum Credit Limit $1, 000.00 Replacement card fee Domestic $7.00 Google Pay, ] | 0 | 0 | 20 | $product[$field["value"]] | 9.95 | Visa | More details | ||||
Greater Bank Visa Credit Card | |||||||||||||
| N/A | 0 | [Up to 57 days interest-free credit. Competitive low interest rate on purchases Low annual fee of $39 - waived if you make purchases of more than $8, 000 a year. Accepted at more than 24 million outlets worldwide - just look for the VISA symbol. Can be linked with up to two other Bank of us accounts ensuring you only have to carry the one card. Option to make balance transfers from existing cards - treated the same way as a purchase with up to 57 days interest free. Minimum credit limit $500, ] | 0 | 0 | 20 | $product[$field["value"]] | 9.99 | Visa | More details | ||||
Bank of us Visa Credit Card | |||||||||||||
Defence Bank CEO David Marshall says Australians need to do their research and shop around.
“It’s time to break the cycle of paying unnecessarily high credit card interest rates," Mr Marshall said.
"We see from these results that Australians are frustrated by the rates they’re paying and the bells and whistles they either can’t use or don’t need.
“Australian consumers need to stop paying 20% for the convenience of a basic credit card, when genuine low-rate options exist for half the cost.”
The survey also found that one in five credit card holders find it hard to pay off their balance after the Christmas period, but the lack of use of credit cards in recent times could translate to less Christmas credit card debt.
See also: Are credit cards recovering in time for a Christmas splurge?
Credit card debt has been plummeting over the COVID period with the latest Reserve Bank figures showing the average credit card balance was $2,728 in October - close to a 14-year low.
The figures also show the number of credit cards on issue have plummeted to 12.9 million in October, the lowest since mid-2008.
Whether the reduction in credit card usage is due to stimulus payments, more frugal pandemic spending, or more people using debit cards, it's clear that there has been a marked shift in consumer behaviour over the COVID period.
A recent survey by MyState Bank found that an overwhelming majority of Australians are responding to the economic crisis by reining in their spending habits, saving and budgeting more, and by paying down their debt.
See also: Financial resolutions to kickstart 2021
“We expect these savvy savings habits to continue, with these new behaviours among consumers outliving the recession," said MyState Bank General Manager Customer Experience Heather McGovern.
The research found 17% of those surveyed resolved to pay off their credit card and personal loan debt in 2021.
Photo by Mark OFlynn on Unsplash
Denise Raward
Emma Duffy
William Jolly
