Credit card interest rates are reaching new lows as banks seek to tap one of the few growth areas for credit.
The debt agency, Veda Advantage, says credit card applications rose by 10% in the year to September, while applications for other forms of credit are sharply down.
Banks are offering interest rates as low as 4.99% per annum, for six months, for credit card holders who switch from rival banks.
Veda Advantage says this will appeal to people who took on interest free deals on consumer goods, which are now due for payment.
