... wrote on May 29^th, 2012 at 1:57pm:


Heh. Lucky you. Ever tried to actually take them up on it? Or are you rich?

SOB

... wrote on May 29^th, 2012 at 2:19pm:


Heh @ ignoring my point. Because if you had tried to get one they may not have given it to you.

SOB

CREDIT card providers are reaping in an extra $30.4 million a month by failing to pass on rate cuts to cardholders.       

Despite the Reserve Bank of Australia slashing rates by 1 per cent since November last year, the average credit card rate has not been reduced and instead has increased by 0.01 per cent.

Latest research from comparison website mozo.com.au shows banks have margins five times higher on credit cards than home loans, with the gap between the cash rate (3.75 per cent) and average credit card rate (17.4 per cent) now a record 13.65 per cent.   

Mozo spokeswoman Kirsty Lamont says credit card customers are being hit hardest by being denied rate cuts.

"Credit card customers are basically being gouged by the banks who are desperate to find profits in a climate of falling mortgage borrowing and increased competition for deposits," she says.

"The banks control about 70 per cent of the cards market and their margins are the fattest that we've seen. They're about six or seven times fatter than the home loans margins.

"You don't see Wayne Swan bashing the banks for high credit card rates."

Lamont says a credit card holder with a balance of $5000 would save $50 a month if providers passed on the RBA's 1 per cent rate cut.

National Australia Bank was the only one of the big four banks that passed on a 0.25 per cent interest rate cut.

HSBC Australia's head of credit cards and retail alliances David Walker says a tough economic climate has made it difficult for card providers to cut interest rates.   

"We can't really compare interest rates on credit cards with home loans," he says.

"We are seeing higher delinquencies and we're feeling the pressure out there that's happening in the economy.   

"We are always monitoring it but at the moment we haven't made a decision to pass on any credit interest rates."

Walker says consumers need to make tough decisions to reduce their debts on plastic.

"People should make all endeavours to reduce their outstanding credit card debt," he says.   

Read more: http://www.news.com.au/money/banking/avoid-the-plunder-on-your-plastic/story-e6frfmcr-1226368617341#ixzz1wEOAGEZ8

Frances wrote on May 29^th, 2012 at 3:05pm:


yeah they do that to me too but one time i asked if i could and they didnt let me.,

SOB

Sir Spot of Borg wrote on May 29^th, 2012 at 3:08pm:


A couple of months ago I paid for my mother's funeral using my card, without realising I already had a few charges on it, and managed to go about $40 over the limit.  I contacted them later, when I got my statement and was told something along the lines of "that's OK, we just extended your credit limit to cover it, is that all right with you?"  The bank just honoured the payment and put up my limit by, I think, $1,500.

Frances wrote on May 29^th, 2012 at 3:05pm:



I get those nuisance letters all the time.
I only want a small limit credit card as they charge 20% interest
+ fees - what a rip-off.

Andrei.Hicks wrote on May 30^th, 2012 at 1:11pm:


Of course I know that.
That is why they send  letters asking permission all the time.

Deborahmac09 wrote on May 30^th, 2012 at 2:21pm:


Not sure about the internet but certainly Foxtel, beer smokes, fast food etc.