Press Release

For immediate release

Information verified correct on December 5th, 2016

More action can be taken to limit excessive credit card rates: creditcardfinder.com.au

  • Reserve Bank officials reportedly face grilling over gap between cash rate and credit card rates
  • Average credit card rate remains at 2011 level despite 10 cash rate cuts
  • More can be done to keep credit card rates under control

June 1, 2015, SYDNEY – Reserve Bank of Australia officials will reportedly be questioned by the Budget Estimates inquiry today, over the swelling gap between credit card interest rates and the cash rate, with Australia’s biggest credit card comparison website creditcardfinder.com.au urging more action needed to help keep credit cards under control.

Although the cash rate has dropped by 2.75 percentage points since 2011, the average standard credit card purchase rate is relatively unchanged at 19.75 percent, leaving Senators today asking two Reserve Bank assistant governors why the 2.75 percentage points worth of savings have been kept from cardholders.

Michelle Hutchison, Money Expert at creditcardfinder.com.au, said more can be done to keep credit card rates under control.

“It’s finally come to public attention that many consumers could be feeling ripped off with their credit card rates as most credit cards haven’t passed on the Reserve Bank cash rate cuts since 2011.

“It’s finally come to public attention that many consumers could be feeling ripped off with their credit card rates as most credit cards haven’t passed on the Reserve Bank cash rate cuts since 2011.

"However, more can be done to help consumers get a better deal on their credit cards. For instance, it could be a good idea to introduce a cap on interest rates to limit excessive rates being offered. Currently, the most expensive credit card purchase rate is 25.90 percent while the most expensive cash advance rate is 29.49 percent.

“But there’s no reason to wait for the outcome of today’s meeting, cardholders should find a better deal now and stop paying too much interest. According to creditcardfinder.com.au, the lowest ongoing credit card purchase rate is 7.99 percent by Quay Credit Union and there are 72 cards that offer no interest on new purchases for up to 13 months. Also, 157 credit cards are offering 0 percent interest for balance transfers for up to 24 months and 50 cards charging no annual fees.

“We’ve never seen so many promotions for credit cards. If more cardholders took advantage of these deals and shopped around, this would force providers to be more competitive with their credit cards.”

The enquiry will take place in Canberra at 1:30pm today, June 1, 2015.

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Disclaimer

The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

About finder.com.au:

finder.com.au is one of Australia’s biggest comparison websites and has helped over 4.8 million Australians find better credit cards, home loans, life insurance, shopping deals and more since 2006. finder.com.au compares 250 credit and debit cards from 31 providers, over 300 home loan products, and information from 13 life insurance providers as well as online shopping promo codes, mobile phone plans, travel insurance and more. One Australian every five minutes is using finder.com.au or creditcardfinder.com.au to find better (Source: Google Analytics).

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