Powered by MOMENTUM MEDIA
subscribe to our newsletter

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.

“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.

Advertisement
Advertisement

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

>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.

“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

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Latest News

Risks to financial stability could be building as house prices and debt levels keep rising, the Reserve Bank has cautioned. ...

The big four bank has unveiled its response to past regulatory issues, a program meant to improve its risk management and accountability.  ...

The proposed acquisition of Westpac PNG and Westpac Fiji by Kina will no longer proceed, it has been confirmed. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

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