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Banks take more on credit card rates

11/03/2010

Banks have increased substantially the margins they make on credit cards over the last two years. While banks and other lenders have generally passed on most of the RBA’s rate cuts, and rate rises to their mortgage borrowers, they have kept most of the rate cuts and heaped on big rate rises to their credit card customers.

On average rates on low and standard rate credit cards are just 0.5 per cent lower than they were before the global financial crisis, despite official interest rates being 3.5 per cent lower. Commonwealth Bank standard credit card rates are just 0.25 per cent lower. NAB standard card rates are 0.14 per cent higher, despite the lower official rates.

Source: Fairfax Trading Room



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Institution Title Product Title Rate (%) Apply Button
bankmecu Low Rate VISA 10.74 Details
NAB Low Rate Visa Card 13.24 Details
BOQ Low Rate Visa Card 13.49 Details
bankmecu VISA Credit Card 13.74 Details
Citibank Clear Card 15.99 Details
HSBC Credit Card - 0% BT for 6 months & No Annual Fee 17.99 Details
BP-Citibank MasterCard 20.89 Details
Institution Title Product Title Rate (%) Apply Button