Rate hikes hit credit cards

THREE interest rate rises have bitten into the nation's love affair with the credit card, with new applications growing at their slowest rate in 18 months as people switched to personal loans to consolidate their debts.

Card applications grew just 0.4per cent in the December quarter of last year and just 5.3per cent for the year, less than a third of the 16.9 per cent growth of 2005.

The figures do not necessarily mean additional credit cards either as, according to Baycorp Advantage, many customers now change cards to take advantage of lower interest offers or interest-free balance transfers.

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