Older Australians with substantial assets are increasingly being denied credit cards, prompting calls for a re-evaluation of lending criteria. The issue, highlighted this week, comes as national credit card debt fluctuates and Australians grapple with cost-of-living pressures.
While the overall trend shows a recent decrease in credit card debt – with Australians wiping $274 million off their balances in July 2025, according to Reserve Bank figures – access to credit remains a challenge for some retirees. The total debt currently sits at $17.7 billion, a slight decrease from $17.8 billion recorded in December 2024.
The problem isn’t necessarily an inability to pay, but rather how lenders assess risk. Individuals with significant savings or property holdings are finding themselves rejected for standard credit cards, a situation that has raised concerns about age-based discrimination and overly rigid lending models. A solution to this issue is currently being sought.
The broader context of credit card leverage in Australia reveals a complex picture. Approximately 68% of Australians possess a credit card, with an average credit limit of around $9,800 as of 2019. In 2020, Australians made over 400 credit and debit card transactions per person. However, a substantial portion – 41% – obtain credit cards specifically for emergency use, suggesting a reliance on them as a safety net during financial hardship.
High interest rates continue to be a major concern. The average credit card interest rate currently stands at 18.49%, and Australians collectively paid nearly $3.3 billion in interest charges in the past year. Balances left outstanding can accrue interest exceeding 20%, potentially trapping users in a cycle of debt. Record personal credit card transactions reached $28 billion in December 2024, indicating a growing reliance on credit amid rising living costs.
Despite the overall debt figure, there have been positive shifts. The $274 million pay-down in July 2025 represents the largest single-month debt clearing since July 2022, coinciding with a period of rising interest rates. Over the past year, approximately 180,000 credit card accounts – 2% of the total – have been closed, suggesting some individuals are actively reducing their reliance on credit.
Fraud remains a persistent issue, with 4.2 million card fraud cases reported in Australia in 2021. The financial sector continues to grapple with balancing accessibility with security measures, particularly as contactless and online payments become increasingly prevalent.
