Credit card issuers are fighting to regain some traction with consumers, offering extended zero rate balance transfer periods, increased bonus points and cashback deals.
According to the latest Mozo Banking Roundup, in the past month a number of issuers adjusted their offers, with one offering a special purchase rate of 5.95 per cent until March next year – the lowest credit card rate in the market.
Reserve Bank consumer and business payments figures show steady declines over a number of years in the number of credit card accounts, the value of purchases and the value of balances accruing interest. Card account numbers are at their lowest level since 2008.
The decline predates the emergence of the fast-growing buy now pay later sector but BNPL has made the credit card sector’s problems worse.
American Express has increased the bonus points offer on the Qantas Premium Card from A30,000 to 100,000, plus 50 status credits, for new customers who spend $3000 in the first three months.
ANZ has extended the zero-rate balance transfer period on its Low Rate card from 22 to 25 months. The bank has also increased the bonus points and cashback offers on a number of cards, including Frequent Flyer Black, Frequent Flyer Platinum and Rewards Platinum.
Bendigo Bank has replaced the six-month zero-rate balance transfer rate on its Low Rate card with an offer of a zero purchase rate for 15 months.
Commonwealth Bank is offering zero interest on purchases for 15 months on all new low rate and low fee credit card options.
Qantas Money has increased the number of bonus points on new card accounts, St George Bank has extended the zero-rate balance transfer period and Virgin Money has introduced a zero purchase rate for 12 months on its No Annual Fee Card.
Greater Bank cut the purchase rate on its Visa Credit Card from 11.95 per cent to 5.95 per cent. The offer runs until the end of March next year, when the rate will move to 9.95 per cent.
Mozo said the best credit card deals include a 30-month zero rate balance transfer offer on Citi Rewards, a 17-month zero purchase rate on ANZ Platinum and 200,000 bonus points on St George’s Amplify Signature card.