According to analysts, credit card interest rates have risen without notice during the three weeks just past, and even more over the past two months.

Three of the four major Australian banks—Westpac, ANZ, and Commonwealth—all raised the interest rate on their basic low-rate credit cards, from 11.99% p.a. to 12.24% p.a. during the previous three weeks. The average credit card interest rate has risen to 16.12% p.a. while rewards cards approach 20%. In the last two months, rates on basic cards have risen an average of 0.38%.

NAB did not follow the trend and left rates on the NAB Low Rate Visa at 10.99% p.a.

What makes this unwelcome Christmas gift even worse is that credit card interest rates did not follow mortgage rates down during the RBA’s rate-cutting cycle, but remained stubbornly high. Because credit card debt is not secured in the same manner as mortgages or car loans, their interest rates are almost always higher to offset the risk to the lender. It’s also likely that some other credit card issuers will raise rates, as well.

According to analysts, the summer and holiday shopping seasons represent one of the banking industry’s major sources of credit card profits. With the RBA clearly signalling even higher rates in 2010, it’s worthwhile to shop around for the best credit card rates on websites such as credit card application particularly for those who intend to put their holiday shopping on their plastic.

Source: news.com.au