Rates remain locked at 14.96%
|CreditCards.com's Weekly Rate Report
||6 months ago
|Methodology: The national average credit card APR is comprised 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 listed above. Introductory, or teaser, rates are not included in the calculation.
|Updated: July 31, 2013
rates on new credit card offers remained stuck at 14.96 percent Wednesday,
according to the CreditCards.com Weekly Credit Card Rate Report.
the sixth consecutive week that the national average annual percentage rate
(APR) remained unchanged.
credit card issuers left interest rates alone this week. Chase tested a new Web
offer on the Chase Slate card. However, the issuer's most recent offer -- which
is 1 percentage point above its earlier rate -- didn't affect the national
average because the card's lower rate offer is still available.
applicants who accessed the Slate card online were offered an APR range of
11.99 percent to 21.99 percent. Now,
some applicants may be offered a slightly higher range of possible APRs,
starting at 12.99 percent and topping out at 22.99 percent.
card issuers frequently test new online offers by temporarily offering multiple
New credit reaches 5-year high
past several months, credit card issuers have gradually stepped up their
marketing efforts and have courted new cardholders more aggressively than
they did in 2012.
first six months of 2013, for example, issuers mailed 23 percent more credit card
offers than they did in the first six months of 2012, according to the market
research firm Mintel Comperemedia.
New data released July 25 by the consumer
reporting agency Equifax suggests that issuers' renewed efforts to attract more cardholders is working. So far, issuers have made 6 percent
more new loans in the first half of 2013 than they did during the same period
addition to approving more cardholders, issuers are also being less stingy with
the amount of credit they're willing to give. Thanks to higher credit limits
and a larger number of new accounts, the total amount of new
credit being issued to new and current cardholders is now at its highest point
since 2008, according to Equifax.
January 2013 and April, issuers approved about $62 billion in new credit -- up
from $58 billion in the first four months of 2012.
total amount of available credit that issuers are approving these days is a big
step-up from the first few years following the 2008 financial crisis, when
issuers sharply reduced the amount of credit they were willing to
lend. According to Equifax, issuers approved 74 percent more credit in the
first four months of 2012 than they did during the same period in 2010.
Private sector job openings on
Card issuers are being more generous in part because the jobs situation for U.S. consumers appears to be on an upswing.
first six months of 2013, for example, employers added approximately 1.2
million new jobs to the economy, according to the Labor Department's most
sector employers, in particular, are creating significantly more new jobs this
year than they did in the first years after the Great Recession.
private sector employers added 200,000 new jobs, according to a report released
July 31 by the payroll processing firm ADP. In June, private employers added
just slightly fewer jobs: 198,000.
in which workers provide a service, rather than produce some kind of good, made up the
majority of new jobs added to the economy this month. Manufacturing jobs declined by 5,000 in July. All other industries added jobs, according to the report.
growth remains remarkably stable," said Moody's analytics economist Mark
Zandi in a press release accompanying the report.
"Businesses are adding to payrolls in most industries and across all
company sizes. The job market has admirably weathered the fiscal head winds, tax
increases and government spending cuts. This bodes well for the next year when
those head winds are set to fade."
See related: Average credit card debt? Take your pick
Published: July 31, 2013