Balance transfers drive credit card churn
A surge in the level of cash advances on credit cards in Australia in October suggests that all the innovation in card product, and card marketing, is worth the trouble for at least some lenders. Cash advances on credit cards exceeded the billion dollar mark for the second time in three months.
Cash advances increased by almost three per cent during October over September, and the 15 per cent increase in cash advances in October 2005 over October 2004 exceeds growth in balances, credit limits and spending. The quarterly monitor of credit demand published by credit bureau Baycorp Advantage in October said new credit card applications increased by 31 per cent to 930,000 in the September 2005 quarter, compared with the same quarter last year.