ANZ cuts rates on platinum and low-rate credit cards
2% cut could trigger a credit card rates war.
ANZ has reduced the rates on its Low Rate Platinum Card by 2% to 12.49% p.a., and on its Low Rate Classic card by 1% to 11.49% and pa. The change takes effect from Thursday 23 February, and could signal a new round of credit card rate wars amongst the Big Four.
ANZ says that the new rates are the lowest the bank has offered in the last 13 years and will save the average customer $150 a month in interest payments. They will be available to both new and existing customers. Current cardholders will automatically be switched to the new rate when it goes live.
Credit card rates generally haven't seen the same degree of variability as rates for home loans, with no obvious correlation between the official RBA cash rate and what card customers pay. ANZ's cut could trigger a rates war with other major banks, as competition for credit card customers heats up.
With many banks cutting back on investor loans due to regulatory concerns, credit card customers could prove a more lucrative market. Contactless payments through smartphones are also likely to be a key battleground. ANZ is the only Big Four Bank to currently offer Apple Pay. In its most recent results, it said that had been a major factor in new customers signing up.
That said, not every credit card change is positive for customers. Last month, ANZ cut the length of its 0% balance transfer credit card deal from 18 months to 16 months. That underscores the importance of carefully comparing all credit card offers, rather than just being seduced by the headline rate. Check out our full comparison of the latest credit card deals.