Credit card issuers have 'tightened up on interest rates'

Consumers are being badly affected by cash rate increases, one industry expert has said.

Credit card issuers and banks have restricted the conditions of some of their products recently, according to one industry expert.

John Kavanagh, writing for the Age, believes consumers are being hit "hard" by the cash rate rises and deals that are available on credit cards now are not as appealing as they were in the past.

This has seen the purchase and cash advance rates on a number of Aussie credit cards increase above the Reserve Bank of Australia's (RBA) official cash level – which currently stands at 4.5 per cent after it was upped by 0.5 per cent at the beginning of May.

Mr Kavanagh advised: "Credit card users need to see how their card offer has changed in recent months and consider moving to another issuer if they are no longer receiving a good deal."

In April, the Citibank upped the purchase on its personal credit card by 60 basis points after the RBA raised the cash rate by 0.25 per cent.

By Joe Letts