Why aren’t those sky high credit card rates falling?

While Australia’s banks have been jumping over themselves last month to announce they were passing on the full 0.25% RBA interest rate cut for their home loan products, they have remained unusually silent over credit card rate announcements, and for good reason.

Research by Team Mozo reveals that since November 2011 when interest rate were at their peak, the average credit card rate in our database has only fallen by a paltry 0.38%. Over this time the RBA has cut the official cash rate by 2.00%. The average credit card interest rate is now 17.14%.

According to Mozo’s Health Check Tool, if you have a $3,000 debt making $100 monthly repayments you would save $743 by switching from the average credit card paying 17.14% interest (+ $50 annual fee) to the best card in the market, Victoria Teachers Mutual Bank Visa Classic Card, which has an interest rate of 13.19% and no annual fee.

If the banks aren’t going to voluntarily cut rates, why not give yourself a rate cut?

There really is no reason you should pay sky high interest rates on a credit card, especially when there are a number of great 0% balance transfer and low interest rate cards available right now from major lenders and mutuals.

Here are some of the best low rate card deals worth switching to:

Commonwealth Bank Low Rate Card

Commonwealth Bank Low Rate Card

  • 0% purchase rate for 5 months, then a low 12.99%

  • 5.99% balance transfer for 5 months

  • $78 annual fee

Bankwest Breeze MasterCard

Bankwest Breeze Credit card

  • 0% purchase rate for 6 months, then 11.99%

  • 0% balance transfer for 6 months

  • $59 annual fee

Victoria Teachers Mutual Bank Visa Platinum

Victoria teachers mutual bank visa platinum credit card

  • 0% purchase rate for 6 months, then 9.99%

  • 0% balance transfers for 6 months

  • No annual fee in the first year (then $84)

  • Available to all Australians, not just Victoria’s teachers

Bankmecu Low Rate

Bankmecu low rate credit card

  • 10.14% purchase rate

  • $59 annual fee

NAB Low Rate Card

NAB low rate credit card

  • 13.99% purchase rate

  • 4.99% balance transfer for 6 months

  • $59 annual fee

 

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Why aren’t those sky high credit card rates falling? was last modified: July 27, 2015 by Mozo

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3 Comments - Write a Comment

  1. The Greater Building Society today (Friday May 17) announced that it is cutting its credit card rates by 1% from June 1. The Greater Visa Credit Card rate will start from 9.25%. The Greater also cut card rates by 0.49% last year.

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  2. Well it’s a year later and there still not falling and I’m actually having people ask if they can put a down payment on a home on there credit cards.

    Just this spring the major banks are getting back into the sub prime market on homes.

    Talk about some high interest rates! Makes me wonder where or if it will ever really end.

    Reply

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