Credit Card Deals Australia

Credit Card Deals Australia provides free, impartial, and comprehensive credit card comparisons for you to help you compare the best Australian credit cards. Since launching in early 2007 we have established ourselves as an authority on comparing Australian credit cards and the voice of the industry via our daily news bulletins from our team of specialist journalists and editors. Find the cheapest credit card, or the one with the lowest interest with all the details of applicable rates, rewards and benefits with links to appropriate sign-up pages for providers such as Aussie, St. George and HSBC.

50 Per Cent of Australians Worried About Interest Rate Hikes

Nearly 50 per cent of all households in Australia say they worry about the prospect of further interest rate rises in the future, though only 20 per cent of households say they expect that they will have higher levels of credit card debt in the future.

According to a survey conducted by Dun & Bradstreet, which sampled consumer expectations from 1205 people across Australia, 49 per cent expressed the expectation that interest rates are likely to rise further and that such increases would hurt their finances.

Households who have dependent children say they expect to feel the pinch of higher interest rates much more than those that don’t. 55 per cent of respondents with children said that higher interest rates would negatively impact their finances, compared with 43 per cent of household that do not have children. 

The survey suggested that the stress from rate hikes would only translate into additional debt for just 20 per cent of households.

The survey examined likely future spending, and the results suggest that half of all Australians polled that are under the age of 50, plant to use their credit card to pay for expenses going forward, whilst only a quarter of Australians aged over 50 said it was their intention to do the same.

Despite the feared interest rate rises there are still a number of low interest credit cards available in Australia.

 

Watch low credit card transfers

CONSUMERS are being warned to read the fine print before signing on the dotted line for low interest credit card balance transfers. Credit card debt hit more than $38 billion in November last year, a record high that is likely to jump even further once the Christmas spend enters the next figures. And with higher interest rates as a result of three rate hikes in 2006, consumers will likely find themselves attracted to low interest rate balance transfer offers.

"In a cluttered finance market, honeymoon rates and other gimmicks to attract new business are common practice,'' Members Equity Bank executive manager of workplace business Tony Beck said. He said consumers needed to fully understand their credit card debt before transferring the balance to a new provider.

This is because while an interest free balance transfer can reduce repayments if used correctly, it can also bring unexpected charges for those who do not read the fine print. Financial analyst Garfield Wright from Cannex, a financial services research group, said there were more than 50 cards on the market that offered balance transfer rates of under 4 per cent.

But he warned that some may have a revert rate - the interest rate charged once the honeymoon period has expired - higher than the original card's interest rate. Another detail to look out for was the interest rate charged on new purchases.

The Australian Securities and Investments Commission (ASIC) said that in many cases the special introductory rate applied to the balance transfer and not new purchases. "So any new purchases or cash advances could be charged at the standard interest rate, even if you bought them during the interest-free period,'' ASIC said on its website.

ASIC said consumers should also make sure that the credit limit on the new card was more than the balance transfer amount to prevent being left with interest accruing on two cards. "The credit card issuer may approve a credit limit that's lower than your balance transfer amount,'' it said. "In this case, you could end up with a new credit card without your balance being fully transferred.''

ASIC said consumers who needed to borrow larger sums of money should shop around. A personal loan may be more suitable for some consumers rather than a balance transfer or cash advance, with interest rates on personal loans generally lower than on credit cards.

 

Credit card fees ignored

CONSUMERS need to boost their awareness of fees and interest rate charges on their credit cards, according to global bank Citibank.

Almost half of all respondents (48 per cent) to a recent survey were ignorant of the interest rate on their credit card, according to the research by banking group Citibank.

And almost one-third (31 per cent) were unsure how many interest free days they were entitled to after making a purchase.

Citibank's card marketing chief, Madeline O'Connor, said it was important consumers took care.

"We want to encourage people to know the basics on their credit card, after all it's something that is used regularly by many of us," Ms O'Connor said.

The research also found almost one quarter of respondents (23 per cent) were unsure if the interest rate that applied to credit card purchases also applied to cash advances.

A majority also thought women were more likely than men to make impulse credit card purchases, but the items they bought were more practical.

Citibank surveyed 972 people for the study, nationwide.