Credit card rates dip under 10%

If your credit card interest rate is more than 20 per cent, it is more than twice what it needs to be.

The lowest credit card purchase rate at present is 9.5 per cent, while the highest is 22.99 per cent and the average is 17.34 per cent.

Credit cards are one of the easiest financial products to switch, with most providers offering fast, online application processes.

Citibank's head of consumer cards in Australia, Stephen Uttley, says lower-rate credit cards generally have little or no reward scheme.

“You don't need all of the bells and whistles all of the time,” Uttley says. “The more functions and benefits you add to the plastic, at some point the consumer will generally pay for it, either in annual fees or interest rates.”

Source: The Daily Telegraph