Australians are understood to be spending more confidently on their credit cards, though not yet at the same rate as before the pandemic, according to recent statistics from the Australian Prudential Regulation Authority (APRA).
The most recent APRA Monthly Authorised Deposit-taking Institution Statistics for March 2021 found that credit card lending increased by $0.4 billion or 1.3 per cent in March.
While this increase is understood to reflect “a rebound in consumption as consumer confidence increases in line with improving economic prospects and conditions,” credit card lending was found to still be well below pre-COVID-19 levels.
The findings of the APRA report are broadly in line with other recent studies. For example, the Citi Australia Monthly Credit Index for March 2021 found a 23 per cent increase in spending month-on-month, or a 2 per cent increase year-on-year.
If you’re in the market for a credit card for everyday spending, it’s important to consider whether your card is suitable for your needs. Low interest rates and low fees may help to minimise the card costs, especially if you don’t always pay off your balance each month. Though if you can comfortably afford to regularly pay off your credit card, a card offering a rewards program may allow you to earn points on your spending.
Be sure to compare credit cards and consider which options may best suit your needs before making any applications.