594,000 Aussies cut up their credit cards Almost one million Australians ditched their credit card in the 12 months to September, the Reserve Bank reported yesterday. The number of active personal credit card accounts in Australia declined 594, 289 in September alone. There are now 13.9 million personal credit card accounts in Australia, down from around 15 million in 2018. The average credit card balance attracting interest is now $1,994, down 1 per cent in the last 12 months. “The credit card market is under pressure from transaction accounts with great debit cards, Apple Pay, Google Pay as well as Buy Now, Pay Later schemes,” said Vadim Taube CEO of comparison site InfoChoice. Credit meltdown Thousands of Australians are turning their backs on the big banks and cutting up their credit cards. But in the lead up to Christmas, the banks are pulling out all stops – trying to win back customers who have found new ways to pay.www.7NEWS.com.au#7NEWS Posted by 7NEWS Melbourne on Thursday, 14 November 2019 Fully digital online home loan launched Neo bank 86 400 have unveiled a purely digital mortgage process. 86 400 CEO Robert Bell said the new system will process loan application and approve loans much faster than the four major banks. “The approval process is up to six times quicker than the Big Four, with just a single piece of paperwork needed for a purchase – the contract of sale.” Other non-bank lenders such as Tic:Toc have introduced paperless home loan applications. 86 400’s best rate is 2.88 per cent pa on a 3 year fixed, 80% LVR mortgage (comparison rate 3.331 per cent pa). Commonwealth Bank could pay MORE compo to customers Commonwealth Bank earnings fell 8 per cent in the three months to September to $2.3 billion. Commonwealth Bank reported growth in its home loan, deposit and business lending books. CBA chief executive Matt Comyn said: “Our strong capital position and balance sheet means we are well placed to meet the needs of our customers. CBA spent $2.2 billion compensating customers including $1.2bn in customer refunds. CBA hasn’t ruled out further remediation costs and compensation payments. Credit cards hit back with amazing offers The credit card market is under pressure from debit cards and Buy now, Pay later schemes. “Credit card issuers are hitting back with some amazing deals to entice customers back,” said Vadim Taube from InfoChoice. “Suncorp and Virgin are both promoting 14 months of no interest on credit card purchases,” said Vadim Taube. “Other cards have 100,000 QFF promotions, cash back offers, no annual fee, even free global WiFi.” Four totally amazing credit card offers Suncorp Bank Clear Options Platinum Visa credit card is currently promoting a special offer of 14 months interest-free on purchases and 14 months interest-free on balances transferred. Virgin Money’s Velocity Flyer Visa lets cardholders choose from three major promotional offers – a 70,000 Velocity points offer, a 22-month zero interest balance transfer deal or a 14-month zero interest on purchases deal. Latitude’s 28 Degrees Mastercard has free global WiFi in many of the places travellers like to go, plus no international transaction fees on purchases. Vadim Taube said: “A great Christmas credit card could be the Latitude Low Rate Mastercard credit card which has a 30-day price drop guarantee. “If the price drops on an eligible purchase you make within 30 days, Latitude will refund you the difference (conditions).” More credit cards go under 10% More credit cards are offering purchase interest rates of under ten per cent pa, including a card from the Commonwealth Bank. And low rates does not mean no-frills. The Latitude Low Rate Mastercard credit card has an interesting promotion – a 30-day price drop guarantee. Compare low-rate credit cards at InfoChoice. Ten top Low-Rate Credit Cards listed on InfoChoice 13/11/2019): Australians are managing their personal credit The number of personal credit and charge card accounts in Australia is at its lowest level since 2011 and has fallen 6.4 per cent over the past 12 months. The credit card and personal loan markets have been in decline for the past few years, with households reducing consumer debt. Debit Mastercards and Visa cards with contactless payment technology have been rising in popularity for 20 years. Increasing use of buy now pay later products may also be hastening the decline. How many Australians use Buy now Pay later? Less than two million Australian consumers have used a Buy now, Pay later service in the last year. According to Roy Morgan Research, use of buy now pay later services has grown rapidly over the past year, even though the number of users is still low. Just under two million Australians used a buy now pay later service in the year to September – up from 1.38 million in the previous year. 9.4 per cent of adult Aussies are using buy now pay later to make purchases, up from 6.8 per cent one year ago.