Survey: Credit card and loan applications dropped 0.2% in April-June

The consumer credit demand in Australia is yet to return to the situation it was in before the global financial crisis, one report has said.

Credit card and personal loan applications have decreased by 0.2 per cent from the April to June quarter compared to the same period last year, a report has shown.

Veda Advantage's quarterly Consumer Credit Demand Index, released today (July 28th), noted that levels seen before the global financial crisis had not been met just yet.

Chris Gration, head of external relations at the company, said an interest rate rise could be why Aussies are reluctant to take on debt.

He added: "Australian consumers appear to be continuing the saving habits adopted during the 2009 downturn."

This could be due to a lot of people paying off their arrears rather than extending Aussie credit.

Moreover, the report revealed that mortgage applications are down 20 per cent year-on-year.

This news comes after Bina Brown, writing for the Sydney Morning Herald, declared that possible interest rate rises are a worry for those looking for home loans.

By Joe Letts