So I've just noticed that the interest rate on my ASB Visa Classic has gone up by 1% in July, never heard a thing about it. I've looked on a few banks websites and they're all now selling credit cards with 20.95% instead of the usual 19.95% rate (which it had been since I got my first credit card like 4 years ago. )
I'm just a bit confused now. I've seen in the news that the official cash rate or interest rate or something like that had dropped, which caused mortgage interest rates to drop quite significantly as well. Since that started happening, my interest rate on savings with RaboDirect has dropped quite a bit too, I get an email nearly every month now telling me the rates have changed. So if interest rates for lending and saving have gone down, why are credit cards going up?
I'm not annoyed by it since I pay it in full each month usually, but I thought I roughly understood how interest rates worked which now I obviously don't lol. Keen to know what I'm missing.
Cheers!
edit: formatting