Rudd to review high rates paid on credit cards

Prime Minister Kevin Rudd is concerned about the fluctuating interest rates applied to credit cards, and has said the Government is reviewing regulation of the industry.

Mr Rudd's concerns were focussed on the sheer range of between 500 and 600 credit cards available with interest rates reaching as high as 28%p.a.

There are several cards offering rates less than half of that, so it is up to you to compare the credit card market to find the best deals.
"I am concerned about the extraordinary spread of interest rates out there," he told Fairfax Radio Network today.

"Of course consumers can choose ... but we are having a very close look at the extent of which they are being properly regulated."
Mr Rudd said that rate cuts should be passed onto credit cards to reflect the new official interest rates, but it's the banks responsibility to do so.

"In terms of the responsibility of the banks ... to bring down their rates appropriately as well, yes, that should happen," he said.
"Is it happening as fast as it should? Well, I think we would all like to see faster action on these questions."

Australian credit cards have been improving over time, with more and more cards offering 0% periods on balance transfers and more competitive interest rates and annual fees.

St. George is currently offering the market leading credit card with the St. George Vertigo, giving you 0% on balance transfers for 6 months, with a low rate of just 11.89% and a low annual fee of $55 p.a. See this card and more at www.which4u.com.au