Credit card interest rates stuck in the clouds

While the economic crisis has ushered in a frenzy of interest rate cuts from the Reserve Bank of Australia, many credit card providers are flatly refusing to bring down rates on their credit cards.

Speaking to the Brisbane Times, Christopher Zinn, a spokesperson for consumer watchdog Choice, said that it was time banks and other lender brought out new cheap credit cards that took the RBA rate cuts into effect.

"The fact that they have actually failed to move significantly in terms of the reduction in the cash rate … does make us wonder why it hasn’t come down," he said.

Earlier this month, Mozo alerted customers to another flaw with seemingly cheap credit card offers after research revealed that many cards come with hefty penalties if balance transfers aren’t paid off within the introductory period.

Interest rates were found to rise to as much as 19.99 per cent, Mozo found, with NAB, Commonwealth and Westpac among the main offenders.

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