As costs weigh up, buy now pay later and credit cards spike

If you don’t live under a rock, you might have heard a thing or two about the Reserve Bank and its frontman Phillip Lowe. Since early 2022, Aussie borrowers have experienced 12 interest rate raises at the hands of the RBA, impacting all sorts of loans across the nation.

Not only are Aussies struggling with the rising cost of living in daily life, but these frequent hikes are also hurting confidence - mortgage enquiries are down by 14% in the last 12 months, for example. 

A recent study by Experian Data shows that while mortgages are not currently the apple of our eye, shorter term lending like personal loans, buy now pay later services, and credit cards are spiking right now. 

The research found that after the first eight consecutive interest rate rises, Aussies started to reach for personal loans - with February 2023 having the second highest number of enquiries for personal loans in the last two years.

You don’t need a shopping addiction and a negative bank account to enjoy buy now pay later (BNPL). BNPL services have increased a whopping 42% in the last two years, with February 2023 seeing the highest number of enquiries since the 2021 Christmas period. 

If you like your credit lending a bit more old school though, good old credit cards have also felt the midas touch this year. The enquiry volumes for credit cards have increased 54% in the last two years, and are up 31% in the last 12 months, according to Experian. 

Credit cards aren’t a one size fits all approach however, with many having different benefits, rewards and rates. If you’re looking to switch up your credit card and need some help finding the right one for you, below are some of the top options available in our Mozo database.