Credit Cards and Interest Rate Rises

March 5 2008

With the rising Australian interest rates for 2008 we have seen a continual change in the rates of Australia credit cards. So what do the banks do when the Reserve Bank of Australia raises the interest rate?

Recently the Reserve Bank of Australia raised interest rates a quarter of a percent. This has had a significant affect on Australian families with increased mortgage repayments. Along with increased mortgage repayments comes also increased percentage rates on credit cards.

The major banks in Australia will sometimes increase your credit card interest rate when there is a rate rise. For example in 2008 all the large banks have placed an increase on all of their credit cards. The average rise being half a percent. The moral of the story is to check the interest rate on your current credit card to see if there has been a rate rise from your original contract.

Many Australians do not know about their increased percentage rate on their current credit card and as a result are unaware of the increased monthly repayments. So to avoid a nasty surprise on your credit card bill do some research and find out about your current interest rate. If you are not happy with your situation then shop around for another credit card deal that offers a 0% balance transfer.