No-frills, low rate credit cards more popular

Credit card users are dumping their gold cards in favour of no-frills cards with low rates and fees. Those that still see value in rewards are using platinum and other premium cards.

The number using a no-frills card has increased from 63 per cent to 76 per cent since 2009.

HSBC Bank Australia's head of credit cards, David Walker, said consumers are being more realistic about their card use. If they are not going to spend enough to earn rewards they want a card that is cheap to use. If they spend enough to accumulate a meaningful number of reward points they want a good earn rate, he said.

Source: Banking Day