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Why have credit card interest rates not been lowered?

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Posted by cgm cgm
Message 1 of 3 528 Views

Bankwest loan and online savings account interest rates have reduced significantly in line with the Reserve Bank's cash rate over the last 5-7 years.

 

Why haven't Bankwest credit card interest rates done the same?

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Re: Why have credit card interest rates not been lowered?

Posted by PeteW PeteW
Message 2 of 3 499 Views

This is a fairly common question actually and like with the decision to make changes to our loan and savings account interest rates, there are also many and varying factors that contribute to credit card interest rates.

 

Some of the reasons credit card rate changes aren't as closely aligned with the Reserve Bank of Australia's (RBA) cash rate include the higher (unsecured) risk of credit card lending, increased fraud and consequently potential losses, costs of running rewards schemes, and transaction costs.

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Re: Why have credit card interest rates not been lowered?

Posted by cgm cgm
Message 3 of 3 494 Views

I would still think Bankwest could lower credit card interest rates somewhat.  But okay.  Thanks for explaining @PeteW!

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