13 new credit cards shake up market

A range of new credit cards is shaking up the market, and with competition comes opportunity. According to the experts most Australians pay too much for their credit cards, but changing – unlike a mortgage – is easy to do. And consumers are spoilt for choice. Over the course of 2010 there's been no less than 13 new credit cards launched, most from big retailers and airlines eager to develop customer loyalty. Plus, there are a surprising number of cards still charging around 10 per cent – or even less – on purchases.

In addition to those new cards, there is noticeably more innovation in Australia's credit market. Qantas Frequent Flyer relaunched with an improved deal for most cardholders. American Express pushed the envelope on rewards points earned for each dollar spent. And banks – finally – embraced debt-free Visa and Mastercard debit cards. ANZ even issued a pre-paid Visa card for teenagers available only on MySpace.

Not only were there lots of new cards and offers in 2010 but serious amounts of innovation as well. The lowest rate card currently in the market is Bankwest's Lite Mastercard with a 5.99 per cent purchase rate for the first 12 months, which then reverts to 10.75 per cent. The best ongoing rates are from credit union-issued Visa cards, some of which are charging 10.49 per cent.

Source: Herald Sun