Credit card interest rates remain at 14.95 percent
|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: Aug. 14, 2013
rates on new credit card offers remained unchanged this week, according to the
CreditCards.com Weekly Credit Card Rate Report.
national average annual percentage rate (APR) stayed put at 14.95 percent Wednesday,
after dipping by one basis point the previous week.
the cards tracked by CreditCards.com featured rate changes this week. Most
credit card issuers also left promotional balance transfer offers and
short-term APRs alone as well.
issuer, Barclays, fine-tuned an offer on a rewards credit card for frequent
fliers. Barclays introduced a 0 percent APR offer to the U.S. Airways Premier
World MasterCard. Applicants who qualify for the U.S. Airways card will now be
able to make interest-free purchases for up to 12 months.
issuer also shortened the card's 0 percent balance transfer period from 15
months to 12 months. Barclays left the card's $89 annual fee alone.
Credit card use falls again
slowly increased the number of changes they made to card offers in recent months as they try to
lure new customers and encourage current cardholders to spend. However, many
credit card holders are still reluctant to pull out their plastic.
economy gradually gains steam, consumers are taking out larger numbers of loans
and slowly increasing household debt, research shows. But many are leaving
their credit cards at home or are only charging what they can afford to quickly
borrowing, excluding mortgages, for example, rose by nearly 6 percent in June,
according to a report released Aug. 7 by the Federal Reserve. However,
revolving credit -- which is mostly made up of credit card debt -- fell by 3.8
Federal Reserve's latest report on household debt and
that consumers are feeling confident enough about the economy to borrow money
for a new car or pay for higher education. But many still aren't ready to charge
smaller items to their high-interest cards.
to a second report, released Aug. 13 by TransUnion, the average borrower is
carrying about the same amount of credit card debt as he or she did during this
time last year.
average amount of card debt per borrower, for example, fell, year-over-year, to
$4,965 in the second quarter of 2013 -- down from $4,971 in 2012.
are also continuing to pay their bills on time at record rates. Late payments
by 90 days or more fell to the lowest levels in almost 19 years, according to
continue to value their credit card relationships as a primary means of
liquidity. This is best demonstrated by the historically low credit card
delinquency rates we see today," said TransUnion's Ezra Becker in a
statement accompanying the
Consumers weary of looming rate
of consumers told researchers that they think the Federal Reserve is going to
raise rates this year after leaving them alone for nearly five years, according
to the survey.
Federal Reserve has left the federal funds rate target -- which helps set other
rates, including credit cards -- near zero since December 2008. As a result,
loans on new homes and cars have been much more affordable over the past
the economy is growing at a faster pace, the Federal Reserve could decide to
raise interest rates sooner than it forecast.
to the report, 68 percent of consumers told researchers that they thought
interest rates would rise sometime in the next year -- up from 33 percent in
result, a larger number of consumers -- particularly those with higher incomes
-- said that they would likely rush their borrowing this year in order to take
advantage of today's record low rates. "Among households with incomes of
$75,000 or more, more than one-in-four cited the advantage of buying homes
before prices or interest rates increased in July," wrote researchers in
See related: Feds ease up on credit limits
Published: August 14, 2013