Seeking new credit card ‘pays off as Christmas approaches’

There is no time like the present to scour the market for a new credit card deal, consumers have been told.

Aussies should take the time to compare accounts in order to source a competitive credit card deal.

Such is the advice of RateCity which points out that recent interest rates increases by some of the major Australian banking institutions have seen the typical rate attached to lower-end credit cards go up 0.38 per cent in the past two months.

Meanwhile, rates on high-end rewards cards are up by around 0.15 per cent to stand at the 20 per cent mark.

Research from the organisation also indicated that three of the country’s four main banks – Commonwealth Bank, ANZ Bank and Westpac – increased rates on their credit card portfolio over the past three weeks.

Consequently, borrowers were advised that now is a particularly good time to seek out a new credit card deal.

“As most Australians would have a higher credit card debt over the Christmas period, it pays to shop around for a better credit card deal, because you could find yourself an extra gift in savings after this festive season,” RateCity chief executive Damian Smith tells the Courier Mail.

He goes on to point out that more lenders could be set to lift their rates over the next few weeks in an effort to maximise profits at the time of year where people often spend the most money.

Reports of predicted rate rises come as Mr Smith states that due to being an unsecured debt – and as such a higher risk for lenders – credit cards are often more expensive than the rates attached to a car or home loan.

And those who will be relying on their credit card to see their spending through the seasonal period, whether it is with an existing plastic product or a new deal, may be interested in advice from ADT Security that consumers should ensure their card is always in their sight as the threat of skimming rises.

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