ANZ, Australia's fourth-largest credit card issuer, has increased interest rates on certain credit cards by 0.50 percentage points, following a previous hike that saw rates rise by up to 1.25 percentage points, RateCity.com.au has reported.
The rate increase affects select ANZ credit cards, with the bank also offering one-off annual fee waivers, cashback, rewards, and frequent flyer points on sign-up for various cards.
This rate hike by ANZ is not an isolated incident, with NAB and Latitude Finance also recently increasing their credit card rates, reflecting a broader trend among lenders to raise costs for consumers.
With six lenders having raised rates on 25 cards in the last six months, the average interest rate for credit cards stands at 18.14%, though options for lower-rate cards under 10% remain available from 12 lenders.
Sally Tindall, research director at RateCity.com.au, advised credit card users to review their cards, cautioning against the high costs of rewards and frequent flyer cards, which now carry interest rates as high as 20.99% among three of the big four banks.
“If you’re one of the millions of Australians with a credit card in your wallet or on your phone, do a quick 10-minute test to make sure you’ve got the right card for your finances,” Tindall said.
“Signing up to a fancy rewards card might feel like winning lotto at the start, particularly if your new provider showers you in rewards points, but the longer you leave that card sitting in your wallet unchecked, the less likely you are to be getting value for money.
“Credit card companies are not charities. Yes, some people can successfully game the credit card system and come out ahead, but if you haven’t done a health check on your credit card recently, there’s every chance the system is actually gaming you.”
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