Why it’s time for you to switch credit cards.

What is the first thing you look at when you open up your credit card statement? The available credit? The overdue balance? Or the payment due date?

How about the interest rate?

It’s a fact that one in three Australians are not aware of their credit card interest rate. And four out of five of those are paying more than 10%. This is a scary statistic considering many of us use our credit cards multiple times a day.

This can be particularly concerning for cardholders with outstanding balances that are getting out of hand. But there is something you can do to help regain control - transfer your balance to a low-rate credit card.

Here are some rules-of-thumb when it comes to shopping for a low-rate credit card.

  1. Avoid cards with extras, like rewards and insurance. These cards often come with a high annual fee and high interest rate.
  2. Look for a card that offers a single-digit ongoing interest-rate. You will incur less interest with the lower interest rate and pay off your balance quicker.
  3. Take advantage of the special introductory rate. Find a card that offers a special introductory rate like the Defence Bank Foundation Credit Card intro rate of 3.99% p.a. for six months. This special rate can really help you pay back that outstanding debt through the reduced interest incurred.
  4. Get those up to 55 day interest-free perks. This way you have lots of time to pay back your balance on new purchases before interest kicks in.

The low-rate Defence Bank Foundation Credit Card.

The Defence Bank Foundation Credit Card provides new cardholders with an introductory rate of 3.99% p.a. for six months on balance transfers, purchases and cash advances before reverting to the low ongoing rate of 8.99% p.a. Cardholders also enjoy 55 days interest free, an additional cardholder for no extra fee, and it is compatible with most digital wallets like Apple, Fitbit, Garmin, Google and Samsung.

This is the card that has tongues and tails wagging as half of the annual $45 card fee is donated to the Defence Bank Foundation - a charity whose sole beneficiary is Defence Community Dogs which provides specially-trained assistance dogs like Bruce (the handsome face featured on the card) to veterans living with post-traumatic stress disorder. It’s a card with a cause.

Making the switch sounds hard but it’s really not.

Transferring your balance to a Defence Bank Foundation Credit Card is easy. If you are already a Defence Bank member you can apply through Online Banking. If you are new to Defence Bank you can join us. As always, our friendly Australia-based Contact Centre team are happy to walk you through the process if you need some help.

Read next:
What is the difference between a low-rate credit card and a rewards credit card?

Important note: This information is of a general nature and is not intended to be relied on by you as advice in any particular matter. You should contact us at Defence Bank to discuss how this information may apply to your circumstances.

All articles