Wizard to rise interest rates on credit cards shortly after cutting home loan rates

'Wizard home loans' have been down spoken by Consumer groups after their controversial decision to up interest rates on two of their credit cards shortly after announcing a cut in home loan interest rates.

The statement made on Sunday detailed that Wizard planned to cut their variable home loan rates by 0.25%. The following day they raised interest rates on their flagship credit card by 2.75% as well as increasing the 'clear advantage' master card rate by 3% making it a massive 18.49%.

While Wizard were happy to publicly announce the good news that they were cutting home loan rates from 9.54 to 9.29 per cent (the first lender to cut rates in seven years) ahead of the reserve banks official cut, they failed to disclose their other plans to raise interest rates on two of their credit cards. This has given the public a mixed message, and has confused its customers.

Nicole Rich from the Consumer Action Law Centre said that the increase in credit card interest rates is likely to effect those who are struggling to make mortgage repayments the most, as it is this group that are the most vulnerable.

Wizard's spokesman Matt Allison said the increase was necessary to keep fees down.

GE Money and Citibank also raised interest rates on credit cards over the past 7 days.

This credit card news may have come as a blow to some of Wizard customers, but there are a countless other credit cards available on the market offering significantly lower interest rates. For example the St. George Vertigo credit card is offering 0% on balance transfers for 6 months and and low interest rates of just 11.89%.