Credit union slashes card rates

Bosses at Community First Credit Union have confirmed they will cut the interest rates attached to some of the lender's products.

The mutual organisation will slash the rates on two of its credit cards by 25 points.

Leaders said the Low Rate Visa Card and McGrath Pink Visa Card would be affected by the reduction – leaving a final rate of 9.5 per cent.

This will ensure they become Australia's lowest rate cards by about 75 basis points.

Recent government figures showed that Australia has amassed total credit card debt in the region of $36 billion and people are always keen to switch to packages that offer the most competitive rates.

Community First Credit Union chief executive John Tancevski said the provider can afford to offer better deals because it is owned by members and doesn't need to deliver huge profits for shareholders.

"That said, we deliver value to our members through superior service, an extensive range of products, lower fees and very competitive interest rates," he remarked.

Have a question about credit cards? Ask the money gurus at Mozo Answers.ADNFCR-1761-ID-801419657-ADNFCR