Credit card interest rates still stubbornly high

Published on July 16, 2019 7:13 am, by

Interest rates on (almost all) banking products have been crashing as the Reserve Bank has cut official cash rates over the past couple of months. No surprise that cuts have been passed on in part and somewhat slowly on loan products and in full and almost immediately on deposit products.

We monitor the rates and fees on about 250 credit cards and about 300 savings accounts. Our data shows that relative to savings accounts, credit card rates have barely moved. In fact some rates have gone up!

Credit Card Interest Rates Going The Wrong Way

This is a big problem for many Australians. ASIC reckon more than 1 in every 6 Australian consumers was struggling with credit card debt in 2018. With rates staying high things won’t be getting any easier for these people.

But all is not lost. There are a bunch of credit cards that already have much lower interest rates and fees than the most popular ones. You might not get reward points, but you could save a lot in interest payments.

Here are 10 credit cards that all have interest rates of less than 10%.

ProviderProductPurchase rateInterest Free DaysAnnual Fee
Quay Credit UnionLow Rate Visa Card7.49%50$50
Auswide BankLow Rate Visa Card8.95%55$50
American ExpressLow Rate Credit Card8.99%55$0
Community First Credit UnionLow Rate Card8.99%55$40
Community First Credit UnionMcGrath Pink8.99%55$40
Community First Credit UnionEasy Street Low Rate Visa Card8.99%55$40
Northern Inland Credit UnionLow Rate Visa8.99%0$0
Bank AustraliaLow Rate Visa9.39%0$59
Bank FirstVisa Platinum9.84%55$99
Commonwealth BankEssentials Credit Card9.90%55$60

Card rates and other features are current as at 18/7/19 but subject to change. Check the details with the relevant provider

This summary has been prepared by MoneyBrilliant Pty Ltd (AFSL 492711, ACL 493068). The information in this summary is of a factual nature only. We are not suggesting or recommending that you take any particular course of action in relation to any financial product or service. It does not take into account your personal circumstances or objectives. If you need financial advice or taxation advice you should seek advice from a licensed financial adviser or tax agent. You may also be able to access additional information from the websites of the Australian Securities and Investment Commission (ASIC) and the relevant product providers.

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Peter is the CEO of MoneyBrilliant. He has over 20 years experience in banking, insurance and accounting. Peter has three sons, ranging in age from 16 to 3, is a sport and fitness fanatic and a volunteer firefighter. He is passionate about improving people's lives through making financial services more accessible.

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