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ISCOVER
Staff Reporter
The banks’ failure to pass on the Reserve Bank’s rate cuts in full in the past means credit card holders have paid $936.9 million in interest charges since 2011.
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According to new research conducted by creditcardfinder.com.au, since October 2011 the cash rate has dropped by two per cent.
However, the interest rate for a standard credit card has only dropped 0.15 per cent per annum and low rate credit cards have dropped by just 0.25 per cent per annum, leaving a significant gap between credit card interest rates and the cash rate over time.
Creditcardfinder.com.au publisher Jeremy Cabral said consumers tend to think the announcement of a rate cut means their personal finances will benefit, but this hasn’t translated into savings for credit card holders.
“It is not expected that this week’s rate cut announcement will result in savings for credit card holders either,” he said.
“Consumers should take control of their credit card finances and act now rather than waiting for the banks to cut rates.”
