Don’t settle for a high rate, high fee credit card

Banks, credit unions and building societies are not cutting credit card rates significantly as the Reserve Bank lowers the official interest rate.

Many credit cards are maintaining rates of more than 19 per cent. However there are good cards now on the market that are charging less than 13 per cent on purchases. There are also many cards with low or no annual fees.

Spokesman for consumer group Choice Matt Levey said consumers were often lured to high rate and high fee cards by rewards programs. The Australian Bankers Association said people should shop around to find a product to suit their own needs and spending patterns.