Low-interest credit cards in demand in Australia

The introduction of new zero-interest and low interest credit cards fuelled record growth in credit card applications during the June quarter in Australia.

The Baycorp Advantage credit demand survey showed credit card applications surged by 27.6 per cent in the period - the biggest increase since the credit agency began compiling the records in 2002.

In the June quarter there were 954,923 applications for new credit cards, up from 748,507 in the March quarter.

The result was 25.5 per cent higher than that of the June quarter last year.

Baycorp Advantage managing director Andrew Want said the introduction of new credit card products offering zero or low interest on balance transfers appeared to have driven the demand.

Want said credit card holders were taking the opportunity to move their existing balances onto new cards, rather than there being actual demand for new credit.

"It seems that consumers are exercising their power by shopping around for the credit card that suits them best," he said.