Credit card complacency is costing Australians thousands

New research from Finder has shown that 55 per cent of Australians have never changed their credit card and it’s costing them hundreds of dollars in fees each year.

A nationally representative survey of 1,057 respondents, 563 of which are credit card holders, revealed an estimated 6 million Aussies have never changed their primary credit card.

The research showed only 8 per cent of cardholders have changed their credit card in the past year and the remaining 35 per cent have switched more than a year ago.

Finder analysis showed credit card loyalty could cost the average cardholder $153 a year.

Amy Bradney-George, credit card expert at Finder, said most Australians aren’t taking full advantage of the market.

“Many borrowers don’t realise the potential savings they can get from switching providers,” Ms Bradney-George said.

“Being too loyal means you also miss out on valuable sign-up bonuses and reward offers.

“Some frequent flyer credit cards offer enough bonus points to fly overseas, and they’re typically only available to new cardholders.”

Australians put a record $32.1 billion on credit cards in September 2022 according to data from the Reserve Bank of Australia, with the average Aussie racking up $2,442.94.

Ms Bradney-George said “set-and-forget” was almost always a bad approach when it comes to financial products.

“People who hold onto the same card over a long period are leaving money on the table,” Ms Bradney-George said.

“They don’t know how much they can save from comparing other cards on the market.

“If you’ve got an older credit card, the interest rate is probably not competitive anymore.”

According to RBA data, the average credit card interest rate is around 20 per cent p.a.

Ms Bradney-George said many new cards have a 0 per cent balance transfer period for as long as 36 months.

“If you are carrying a $5,000 balance on a regular credit card, you could save more than $2,000 in interest by doing a balance transfer to some cards,” Ms Bradney-George said.