Australian Credit Card Offers Interest Rate Summary 2008
The below table represents the average interest rates of over 150 (Total Sample Size) Australian Credit Card Offers. The table tracks interest rate movements since March 2008 and is broken down by category. Low rate credit cards would generally fall within the "Standard Credit Card" category.
The increase in interest rates is most prevalent in the Standard Credit Card Category. Banks / Issuers have long held the view that Cash Advances hold a higher level of default risk than purchase transaction. So it is no supprise to see a 145 basis point (1.45%) increase in this category as the banks try to minimise /counter their level of risk in a period of rising default levels. The Standard Credit Card section also contains the low interest rate credit card segment. During 2008 we have seen rises in cash advances on some low rate cards a high as 5%.
|
Credit Card Type
|
Interest Rate
|
August
|
July
|
March
|
BP Change
|
% Change
|
|
Standard Credit Card
|
Purchase Rate
|
15.75%
|
15.65%
|
15.6%
|
15
|
.96%
|
|
|
Cash Advance Rate
|
18.30%
|
17.20%
|
16.85%
|
145
|
8.61%
|
|
|
|
|
|
|
|
|
|
Gold Credit Card
|
Purchase Rate
|
18.36%
|
18.30%
|
18.00%
|
36
|
2.00%
|
|
|
Cash Advance Rate
|
18.94%
|
18.95%
|
18.70%
|
24
|
1.28%
|
|
|
|
|
|
|
|
|
|
Platinum Credit Card
|
Purchase Rate
|
18.45%
|
18.00%
|
18.00%
|
45
|
2.50%
|
|
|
Cash Advance Rate
|
19.70%
|
19.20%
|
19.00%
|
70
|
1.28%
|
|
|
|
|
|
|
|
|
|
Reward Credit Card
|
Purchase Rate
|
18.37%
|
18.34%
|
N/A
|
|
|
|
|
Cash advance Rate
|
19.46%
|
19.36%
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
All Credit Cards
|
Purchase Rate
|
16.56%
|
16.48%
|
16.29%
|
27
|
1.66%
|
|
|
Cash Advance Rate
|
17.88%
|
17.77%
|
17.74%
|
48
|
2.76%
|
|
|
|
|
|
|
|
|
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