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Which bank is cutting credit card interest rates?

Which bank is cutting credit card interest rates?

One big bank is making big cuts to credit card purchase interest rates. Which is surprising because, unlike mortgage and savings rates, credit card interest rates rarely change at all. Credit card interest rates are notoriously high and resistant to change. Banks say this is because credit card rates are not based on the Reserve Bank’s official cash rate but on the increased risk they accept by issuing credit cards.

 

Last year the chief executives of all the big banks testified before the House of Representatives Standing Committee on Economics. This parliamentary committee is investigating high credit card rates, among other banking issues.

 

ANZ chief executive Shayne Elliott told the politicians that his bank would look into cutting credit card interest rates. Mr Elliott said then: "I think there's an opportunity for us to take a bit of leadership on this."

 

The next round of House of Representatives Standing Committee on Economics hearings begin on Friday next week. Mr Elliott will be the first bank CEO on the schedule.

 

Credit card interest rates cut

 

ANZ Bank has announced a significant cut in purchase interest rates (but not cash advance rates) on two of its low rate credit card products by up to two percentage points.

 

From Thursday, 23 February 2017, ANZ Bank will reduce the purchase rate on its Low Rate Platinum Mastercard credit card by 2.0 percentage points to 11.49 per cent from 13.49 percent. The ANZ Low Rate Platinum Mastercard credit card features up to 55 days interest free, an annual fee of $99 and a cash advance rate of 21.74 per cent.

 

Right now the ANZ Low Rate Platinum Mastercard credit card is giving away $250 cash back on the card and charging zero per cent on purchases for the first six months.

 

 

Also from Thursday 23 February 2017, ANZ Bank is cutting the purchase interest rate on its Low Rate Classic Mastercard credit card by 1.0 percentage points to 12.49 per cent. The ANZ Low Rate Classic Mastercard credit card features up to 55 days interest free, an annual fee of $58 and a cash advance rate of 21.74 per cent.

Right now the ANZ Low Rate Classic Mastercard credit card is giving away $100 cash back on the card and charging zero per cent on purchases for the first six months.

 

These new, lower rates apply to existing and new customers. So more than 500,000 existing ANZ Low Rate credit card account holders will get a welcome relief from some interest charges.

 

What are the lowest credit card interest rates in Australia?

 

The ANZ credit card interest rate cuts do not make the ANZ Low rate credit cards the cheapest in Australia. There are many low rate credit cards with lower rates than the ANZ bank cards.

 

The lowest credit card purchase interest rate now available in Australia is 8.99 per cent from the Community First Credit Union’s Low Rate Visa credit card. This card is also available as a McGrath Pink Visa credit card to assist breast cancer research. The Community First Low Rate Visa credit card features an introductory purchase interest rate of 3.99 per cent for the first six months, up to 55 days interest free and an annual fee of $40.

 

Bank Australia’s Low Rate Visa credit card has a purchase interest rate of 9.39 per cent with an annual fee of $59 and no interest free days.

 

G&C Mutual Bank Low Rate Visa credit card has a purchase interest rate of 9.49 per cent with an annual fee of $50 and up to 50 interest free days. The G&C Mutual Bank Low Rate Visa has a zero interest balance transfer offer for 12 months.

 

Beyond Bank’s Low Rate Visa credit card has a purchase interest rate of 10.49 per cent, up to 62 days interest free and an annual fee of $49.

 

You can research and compare 163 low rate credit cards from all of Australia’s significant banks and credit unions here.

 

Source: Infochoice.com.au



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