Credit card rates still stubbornly high

By Mozo ·

In spite of a string of interest rate reductions by the Reserve Bank, such cuts are yet to be reflected in many credit cards.

Figures released by InfoChoice revealed that of the 137 credit cards it has monitored since September 2008, the interest on 58 cards has not been changed.

And of the 79 that have seen a change, interest rates on 12 credit cards has actually gone up – by an average increase of 1.27 percentage points.

Those looking to compared credit cards may be interested to hear that the average interest rate on those cards on Infochoice’s database is currently 16.04 per cent, a fall from the 16.52 per cent record at the start of September.

During the same period of time, however, the base rate has fallen four percentage points to stand at a 45-year low of 3.25 per cent.

Shaun Cornelius, spokesperson for Infochoice, claimed that the difference in decline was "very hard to justify" and that those struggle to pay off their cards in full should seek out a low-rate credit card.

In comments made in recent weeks, financial writer Ashley Ormond pointed out in an article for the Australian that it is imperative for people to repay their credit card debts.

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