80% of Australian credit cards 'are active'

Some 80 per cent of Australian credit cards are currently active, according to new study.

The Business Standard reported that the research, which was published by Edgar, Dunn & Company and the India Cards Council, compared active debit and credit cards in India, the UK, the United States, Australia and Singapore.

It found that some 75 per cent of the credit cards in Singapore are active, while 56 per cent were active in India.

The study also noted that some 45 per cent of active debit cards in Australia are used at point-of-sale transactions, compared with 26 per cent in India and 86 per cent in the United States.

According to money-au.com, first-time credit cardholders may wish to begin building their credit history with a gas card or a store credit card, as these may be easier to obtain than other types of cards for someone who does not have a previous credit history.

It also suggested that first-time borrowers should not be put off taking on a credit card until the economy recovers, as it is important for them to have built up an established credit history if they plan to do future borrowing later in life - such as on a mortgage.