Credit card limit of Australians on the rise
A recent study has found that the collective value of Australians' credit card limits has reached a high of $48.4 billion in November last year as the banks successfully encouraged customers to increase their limits. In the same month, the total outstanding on bank issued credit cards (excluding charge cards like Amex and Diners Club) hit $16.8 billion, up $3.5 billion compared to the same period the previous year. The Australian Credit Card Report – conducted by CVC Global consulting – indicates credit limits are on the rise with a 50 per cent increase in limits over the last two years to November 2000. Based on Reserve Bank figures, the average Australian has a credit card limit of $5,147. CVC Global general manager Mr Mike Epstein, said banks target customers who regularly near their credit limit, access them and then offer a limit increase on the basis that they're likely to spend more because of it.
‘Customers take the credit as banks raise limits', The Sydney Morning Herald, 17/01/01, p 21.