Credit Card Interest Rates Hit New Record

Credit Card Interest Rates Hit New Record-Image via Wikipedia

Interest rates on new credit card offers soared to record heights this week according to the CreditCards.com Weekly Credit Card Rate Report.

The average is composed of 100 of the most popular credit cards in the country, including cards from dozens of leading U.S. issuers and representing every card category. Introductory (teaser) rates are not included in the calculation. Of the nine categories we track, two rose, while the other seven were unchanged.

Rates for card categories tracked by CreditCards.com are listed below:

Credit Card Averages
Avg. APR Last week 6 months ago
National Average 14.91% 14.75% 14.71%
Low Interest 10.73% 10.73% 11.91%
Balance Transfer 12.78% 12.78% 12.90%
Business 13.07% 13.07% 12.91%
Student 13.77% 13.77% 13.31%
Cash Back 14.16% 13.90% 12.48%
Airline 14.31% 14.31% 14.30%
Reward 14.51% 14.28% 14.35%
Instant Approval 15.99% 15.99% 15.99%
Bad Credit 24.96% 24.96% 24.95%
Updated: 7-6-2011

The average annual percentage rate (APR) on new credit card offers rose to 14.91 percent this week — the highest level since CreditCards.com began tracking APRs in 2007. The previous high was 14.85 percent, set in mid-May.

The move was spurred in part by the Chevron and Texaco Visa card, which saw its APR change to a flat rate of 23.99 percent from a range of 13.49 percent to 20.40 percent. Since only a card’s lowest available APR is used in our calculations, the move caused the national average to spike.

The CreditCards.com credit card rate survey is conducted weekly, using offer data from the leading U.S. card issuers’ websites. Introductory offer periods and regular interest rates will vary with applicants’ credit quality and issuer risk-based pricing policies.

About CreditCards.com

CreditCards.com is the leading online credit card marketplace connecting consumers with multiple credit card issuers, including a majority of the 10 largest in the United States, based on credit card transaction volume. CreditCards.com, http://www.creditcards.com, enables consumers to search for, compare and apply for credit cards and offers credit card issuers an online channel to acquire qualified applicants.
http://www.creditcards.com

Tagged with:

Filed under: Business

Like this post? Subscribe to my RSS feed and get loads more!