Will lower interest rates affect credit cards?

9 October 2008

When the RBA lowered interest rates on Tuesday to 6%, many banks have begun lowering home loan interest rates. But what about credit card interest rates?

Australian banks have not given any indication yet as to whether they intend to pass on the interest rate cuts to other products, such as credit cards. Australia's collective debt is around the $32 billion mark and many credit card holders are begging for credit card interest rates to be lowered as well.

Australian banks could earn over $880,000 for each day that current credit card interest rates remain unchanged. Many credit card interest rates are quite high in comparison to home loan interest rates.
Credit cards can be very handy in everyday spending - but they must be used wisely. If you're in over your head in debt, then you are not doing yourself any favours.

If you want to take control of your credit card debt, a balance transfer credit card might be able to help you. A balance transfer takes owing balances on credit cards and places them on one credit card. Many balance transfer credit cards offer low interest rates for an introductory period that usually lasts about six months. A low rate credit card could save you more money than your current credit cards with higher interest rates.

Take a look at our top 5 credit cards and use our credit card calculator to compare them against your credit cards to find out how much you could be saving. Find the right balance transfer credit card for you and fill out a credit card application today.

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