Around 27% of youth aged 18-24 years hold credit cards with no annual fees in Australia, where approximately one in six credit cards (17%) have no annual fees, according to a survey by Roy Morgan.
The Roy Morgan Consumer Finance Single Source Survey, which conducted over 50,000 interviews per annum, found that the proportion of credit cards held by Australian youth with no annual fees is increasing.
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In 2009, around 12% of credit cards held by Australian youth did not have annual fees, compared to 17% in December 2013, an increase of 480,000, driven by over 50 years age group, where the number of credit cards with no annual fee increased by 52%, followed by 36% rise in the 25-34 years age group.
Among different major banks, Commonwealth Bank holds the highest market share of credit cards with no annual fees with 24%, followed by Westpac with 19%, NAB with 13% and ANZ with 10%.
Roy Morgan Research industry communications director, Norman Morris, said credit cards that offer the convenience of no annual fees are increasing in popularity across all age groups, however the lack of annual fees are usually offset by being charged a higher interest rate and receiving minimal other benefits and features.
"Getting the balance right between fees and features is critical to success in this market," Morris added.
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