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Current Market Conditions for Credit in Australia
Current Market Conditions for Credit in Australia
Australian credit card comparison website, CreditCardCompare.com.au is keeping its finger on the pulse of the Australian credit card market commenting on the recently published credit reports.
NSW ,
Tuggerah,
Australia
(prbd.net)
10/08/2010
"At the same time, the latest research from credit reporting agency Dun & Bradstreet revealed that 23 percent of Australian households expect to apply for new credit in the next three months and 13 percent plan to apply for a an increased credit limit"
Tuggerah, NSW - August 09, 2010 -- Australian credit card comparison website, CreditCardCompare.com.au is keeping its finger on the pulse of the Australian credit card market commenting on the recently published credit reports. Broadly speaking it looks like Australians are more likely to save than spend meanwhile there is an expected rise in credit cards for people with higher income.
The Reserve Bank of Australia have kept interest rates unchanged at 4.50% since May 2010 which has helped to allay the fears of home-owners. This also means that the average interest rate on credit cards are unlikely to go up but will stay as they are currently. According to Credit Card Compare the average purchase rate on credit cards is around 17.80% and the best low rate card will charge 10.75% on purchases.
Recent data from credit reporting agency Veda Advantage shows Australians are more likely to save than spend. According to Veda Advantage, consumer c\cf0 redit demand has not returned to pre-global financial crisis levels. Its March 2010 Australian Debt Study, conducted by Galaxy Research, revealed only 8% of Australians were looking to apply for new credit in the six months from April to September 2010.
Veda Advantage Head of External Relations Chris Gration attributed this continued trend to rising interest rates and a "saving rather than spending" mentality. Gration is quoted in the report as saying the saving habits Australian consumers adopted during the 2009 downturn seem to be continuing well into 2010.
However, the study also showed that Australian individuals and families with higher incomes are still seeking credit, so good quality demand for new credit will still exist over the next 6 months for offers such as shopping rewards cards and frequent flyer credit cards(http://www.creditcardcompare.com.au/frequent-flyer-credit-cards.php).
Veda Advantage's quarterly Consumer Credit Demand Index for April-June 2010 reported:
- Credit card applications remained flat (-0.2%) compared to the previous June 2009 quarter.
- Applications decreased by 9 percent compared to the previous quarter.
- Credit card enquiries fell for the 8th consecutive quarter year-on-year.
At the same time, the latest research from credit reporting agency Dun & Bradstreet revealed that 23 percent of Australian households expect to apply for new credit in the next three months and 13 percent plan to apply for a an increased credit limit.
Credit Card Compare started in 2008 with the objective of allowing consumers to compare credit cards in one place, review the options and apply directly & securely online on the website of the bank or credit card lender. Consumers can compare a wide range of balance transfer credit cards(http://www.creditcardcompare.com.au/balance-transfer-credit-cards.php) and frequent flyer credit cards(http://www.creditcardcompare.com.au/frequent-flyer-credit-cards.php). The website also has a blog, the Credit Letter where our writers regularly post useful money saving tips and interesting personal finance editorials. Consumers interested in receiving money saving tips can subscribe to 'the Credit Letter' blog via RSS or receive an email newsletter.
Contact :
Credit Card Compare
PO BOX 3182
Tuggerah, NSW 2259
Australia
team@creditcardcompare.com.au
http://www.creditcardcompare.com.au
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