$1.6 billion loyalty tax: 1 in 3 have never reviewed their credit card
05 Mar 2026
Australians paid an estimated $1.6 billion in unnecessary credit card interest last year, as new research shows one-third of cardholders have never reviewed or considered switching their cards.
A new Canstar survey of 2,029 Australians with a credit card found:
- 45% reviewed their card in the last 12 months;
- 24% did so more than a year ago; and
- 31% have never reviewed their card.
Our analysis shows last year, Australians collectively shelled out more than $3.4 billion in credit card interest at an average credit card rate of over 18% on a total debt that finished the year at $19.6 billion.
However, this bill could have been almost halved if those with credit card debt switched to a card offering rates of 10% or less, delivering an estimated collective saving of around $1.6 billion.
For someone with a $4,000 revolving credit card debt, the difference between having an average-rate card versus a low-rate one is an estimated $347 a year in interest charges.
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| Loyalty tax: savings over last year if credit card interest was 10% | ||
|---|---|---|
| Total credit card debt | On $4k debt | |
| Interest paid (12 mth av. rate: 18.67%) | $3.4 billion | $747 |
| Interest paid at 10% | $1.8 billion | $400 |
| Difference to average | -$1.6 billion | $347 |
Source: Canstar. Average debt and rates from the RBA over 12 months to Dec 2025. Debt is for personal cards using original data. Individual scenario assumes the cardholder has a balance owing each month of $4k.
What rate should people be aiming for?
The average rate on a credit card, of those paying interest, was 18.67% over the last 12 months, however the interest rates on credit cards can vary widely.
Credit card interest rates can run as high as 28.49%, but can also go as low as 8.99%, with five providers on the Canstar database offering credit cards under 10 per cent. Note: excludes business cards and ‘no-interest’ cards that charge fees instead.
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| Providers with credit card rates under 10% | ||
|---|---|---|
| Card | Purchase rate | Annual fee |
| Community First Low Rate | 8.99% | $50 |
| MOVE Bank Low Rate card | 8.99% | $59 (waived in yr 1) |
| Westpac Lite | 9.90% | $9 a month |
| Greater Bank | 9.95% | $49 (waived with $12k min spend / yr) |
| Bank of Us | 9.99% | $39 |
Source: Canstar. Based on personal credit cards on Canstar’s database, excluding interest-free cards. One product chosen per provider. Table sorted in ascending order by purchase rate, followed by annual fee.
Ongoing fees can also sting
Latest RBA data, for the financial year ending 2024, shows the banks raked in almost $1.59 billion in credit card fees. That’s up by 11% from the previous financial year and almost double what they made from mortgage fees ($856 million).
Like credit card interest rates, fees can also vary. The highest credit card annual fee on personal cards is currently $1,200, however, there are 11 providers on the Canstar database offering at least one card with no ongoing fees at all, including three that offer rewards points – Coles, American Express and BankVic.
- Highest annual fee: $1,200
- Lowest annual fee: $0
- Providers with $0 annual fee: 11, including:
- 4 with low rates under 12%
- 3 offering rewards (Coles, American Express, BankVic).
What can people do to give their credit card a proper health check?
Think about what you need a credit card for and whether your current card is serving that purpose.
- To pay off debt: a low rate, low fee option should be the priority.
- In case of emergency: look for a low rate card.
- Rewards points: look for one that offers a high rate of return vs interest and fees paid.
- For travel and shopping: no international currency conversion fees is often a drawcard, potentially with travel perks (provided the perks outweigh the card costs).
Those with a rewards card in their back pocket should also do an annual check to see if they came out ahead over the last 12 months. To do this:
- Step 1: Write down how much you paid in fees over the last year.
- Step 2: Check how much interest you’ve been charged in this time.
- Step 3: Log on to your rewards program and calculate the value of points redeemed in the past 12 months.
- Step 4: Then do the equation: the value of points redeemed must be greater than the interest charges + fees paid. Otherwise, your card is getting the better of you.
What is the price of setting-and-forgetting?
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| When Australians last reviewed their credit card | |
|---|---|
| Never | 31% |
| Last 6 months | 27% |
| 6-12 months | 18% |
| 1-2 years | 11% |
| More than 2 years | 13% |
Source: Canstar. 2026 survey of 2,029 Australians. Reviewed card included checking rates, fees or considered switching.
Canstar’s data insights director, Sally Tindall, says, “Credit card loyalty is costing Australians a staggering $1.6 billion a year in unnecessary interest. That’s the price of setting-and-forgetting.”
“Canstar research shows one in three cardholders have never reviewed their credit card. In a market where rates range from 8.99 per cent right up to 28.49 per cent, that’s like handing your bank your wallet and hoping for the best.
“Australians paid an estimated $3.4 billion in credit card interest last year, yet, if the average rate dropped to just 10 per cent, then the bill could have been almost halved.
“Breaking it down for the individual, if you’re lugging around $4,000 in debt and you switch from the average rate down to a rate of 10 per cent, you could save almost $350 interest in a year. Think about it, this money could put a decent dent in the debt you owe.
“Fees can also eat into your back pocket even if you don’t have money owing on your credit card. There’s a difference of Mount Kosciusko between the highest fee and lowest fees – the highest being $1,200 – that’s how much some people are paying to their card provider every single year just for having the card.
“There are eleven providers offering credit cards with $0 ongoing fees – three of these even offer rewards. So you can have your cake and eat it too, if you shop around.
“No matter which card you land on, diarise a health check on your card every 12 months. Check your rate, your fee and actually calculate what your rewards are worth. If the value of your points doesn’t outweigh your interest and fees, the card is costing you and it’s probably time to ditch it.”
This article was reviewed by our Consumer Editor Meagan Lawrence before it was updated, as part of our fact-checking process.
