- 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%.
- The Defence Bank Foundation Credit 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.
- Macleay Island resident Michael Rogers switches to Defence Bank.
A Macleay Island resident and RAAF veteran has shown how easy it is to switch credit card providers and get a better deal to start 2021.
62-year-old Michael Rogers, who served in the RAAF for nine years, says the new Defence Bank Foundation Credit Card has extra significance for him.
“I didn’t know the rate I was paying; I honestly didn’t have a clue.
“That didn’t bother me because whenever I had the money, I paid it back straight away.
“When I found out about the low interest rate and how part of the annual fee would go to people who need it, it really had an impact on me.”
The Defence Bank Foundation Credit Card has 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 Credit Card goes to the Defence Bank Foundation which supports veterans and their mental health.
Defence Bank recently commissioned research that found Australians plan to use their credit cards more in 2021 but more than a third don’t know the interest rate they currently pay.
The poll by independent research agency fiftyfive5 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.
The research also showed 57% pay little attention to their credit card interest rate while one in two question the value of card reward programs, particularly during a pandemic.
Rogers said making the change to a low rate card had made a big difference and urged others to do the same.
‘’Normally our credit card is down around the zero mark and we might use it up to $1000.
“Our card is bouncing around due to our home renovations, but with the low interest rate it won’t take us much to get it back down.’’