Credit card rates remain too high

High credit card interest rates will deter consumers from spending at Christmas time says the federal opposition who are demanding the government take action over card rates. Average credit card interest rates are still up to around twenty per cent and have not fallen as much as the Reserve bank’s official cash rate. Several banks and card issuers trimmed card rates after the latest big rate cut by the RBA, including Westpac which cut card rates by 0.8 per cent on November 14. GE Money continues to charge 20.25 per cent on its Coles Source MasterCard, which is unchanged since April. Westpac card rates vary between 12.94 per cent and 19.99 per cent. NAB card rates vary between 12.7 per cent and 19.99 per cent. Coalition spokesperson on finance matters Joe Hockey said “It’s not good enough that the Reserve Bank has dropped official interest credit rates to 5.25 per cent and yet credit cards are still up over 19 per cent.”

Source: Financial Review