Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Aussies in the dark on credit card rates

Aussies in the dark on credit card rates

New research has revealed the majority of Australians are unaware of their credit card rates and fees.

A survey conducted by industry super-fund-owned bank ME showed of 2,200 respondents, 73 per cent could not disclose their credit card’s interest rate, while 40 per cent didn’t know if their credit card had an annual fee.

ME’s head of deposits and transactional banking, Nic Emery, said the findings show that the current credit card inquiry has come at a great time.

Advertisement
Advertisement

“The best thing about the current Senate Economic References Inquiry into credit card interest rates is its ability to shine a light on the high rates people could be paying, as well as making people aware that low-cost cards are available,” he said.

Despite being unaware of rates and fees, the survey revealed that 65 per cent of respondents were confident they have a credit card which best suits their needs, with 78 per cent stating they have never switched cards.

The survey also found that 36 per cent of respondents reported they were “credit card revolvers”, meaning they’re paying interest on their purchases.

Furthermore, 72 per cent said they made $500-plus purchases on their card, and of those, 35 per cent said they were revolving, demonstrating that they’re paying interest on higher amounts.

“You don’t have to accept high-cost cards given one in four cards have rates under 13 per cent but with more than 50 per cent of cards charging 19 per cent or more, many credit card users are probably paying too much,” Mr Emery said.

“Credit card providers wouldn’t be able to charge so much if people were more vigilant and exercised their right to switch.”

Aussies in the dark on credit card rates
mortgagebusiness

 

Latest News

Regulators could move to set caps on loan volumes for borrowers with high debt-to-income ratios if the housing market recovery continues to ...

The federal Treasurer has welcomed the final budget outcome for the 2019 financial year, which shows that the deficit now equates to zero pe...

The Federal Reserve has slashed rates for the second consecutive month, “reinforcing” the necessity of further cuts to the cash rate in ...

FROM THE WEB
podcast

LATEST PODCAST: New lending launches

Do you think the mortgage market will see more consolidation this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.