Credit card holders to be hit with more interest rate rises

Australian credit card holders will face higher repayment costs as the major banks raise interest rates this month.

The Commonwealth Bank and Westpac will raise card rates by an extra .25 per cent from next week after the Reserve Bank chose to hike the official cash rate by 25 basis points this week, the Herald Sun reported.

InfoChoice chief Shaun Corne told the news provider that rising rates mean customers are now paying an extra $110 a year on balances of $3,000.

He said that big banks were running out of excuses to increase rates given the improving economic climate and their ballooning profits.

"Bad debts are reducing and it’s becoming cheaper for the banks to borrow money. This seems to be a case of what goes up doesn’t go down," he added.

The comments may be of interest to Aussies who decide to compare credit cards in search of better rates. This week, the Greens announced they will introduce a bill to ban the banks from charging $2 fees for rival customers to use their ATMs.

This article is brought to you by Mozo – Helping you compare credit cardsADNFCR-1761-ID-19654171-ADNFCR