1 in 3 Aussies don’t know their credit card rate, while most pay too much

12 January 2021

• Independent research shows 35% don’t know their credit card interest rate
• 4 out of 5 of those who do know the rate they’re paying are paying more than 10%
• One in four expect to use their credit more in 2021
• Almost 60% say they don’t pay much attention to the interest rate on their credit card
• One in two say credit card reward programs are generally not good value for money

Australians plan to use their credit cards more in 2021 but more than a third don’t know the interest rate they currently pay.

A new poll has found 35% of people don’t know their credit card interest rate, and those who do are paying substantially more than what’s offered by low-rate cards on the market. The poll by independent research agency fiftyfive5 commissioned by Defence Bank found 57% of those surveyed pay little attention to their credit card interest rate while one in two question the value of card reward programs, particularly during a pandemic.

The poll of more than 1000 Australians also found:

• One in four credit card holders carry a balance at least sometimes throughout the year
• Around one in five find it hard to pay their credit card balance after the Christmas period
• 25% expect to use their credit card more in 2021
• Four out of five of those who do know their interest rate are paying more than 10%, with some paying more than 20%

Defence Bank CEO David Marshall says the poll results give Australians a clear choice for 2021.

“It’s time to break the cycle of paying unnecessarily high credit card interest rates. 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 Defence Bank Foundation Visa Card is one such card with an introductory rate of 3.99% for the first six months before reverting to 8.99%, one of the lowest in the market. Half of the $45 annual fee from the Defence Bank Foundation Visa Card goes to the Defence Bank Foundation which supports Veterans and their mental health. The Foundation supports the Defence Community Dogs program, a specialised Dog Training program which rescues abandoned dogs and trains them through Correctional Services to assist Veterans coping with PTSD, depression and anxiety.