Are credit card rates increasing?

Next time people go to compare credit cards, it could be that they find rates have been increasing.

An article in the Sydney Morning Herald noted that the government over the last year has been putting checks on banks to ensure mortgages and home loans do not rise too much.

However, the article went on to suggest that this has not been the case with all monetary products.

It pointed out that financial institutions face funding headaches, as well as growing costs of short-term funds.

"Rates in less politically sensitive areas – such as business loans and credit cards – have been rising as banks have sought to protect profit margins," stated the news provider.

Consumers may find that when they compare credit cards now, the rates have been affected by the change in the Reserve Bank of Australia’s cash rates.

From today (November 4th), the rate has grown by 25 basis points to 3.5 per cent.

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