Banks and other financial institutions have cut credit card interest rates over the last year, but not by as much as mortgage interest rates have fallen.
Credit card interest rates have come down by just over half of the cuts in the Reserve Bank’s official cash rate, according to research published in The Journal of the Asia Pacific Economy.
Official interest rates have been cut to historic lows of 2.75 per cent but many cards have failed to cut their rates at all.
Credit cards users need to shop around carefully to find the best value card for their needs, weighing up the rate on offer, the fees charged and other features such as rewards.
Source: Bankheadlines.com.au
