Credit card interest rates rise to 15.09 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: October 29, 2014
rates on new card offers rose slightly Wednesday, according to the
CreditCards.com Weekly Credit Card Rate Report.
national average annual percentage rate (APR) inched up to 15.09 percent this
week after remaining at 15.07 percent for four weeks. The last time average
rates were this high was in January 2012 when the national average hit 15.14
week's change was due to a reshuffling of the CreditCards.com database. Two
cards that CreditCards.com tracks, the CitiBusiness ThankYou card and the Hess
Visa Platinum card, are no longer offered online. CreditCards.com replaced the
cards in the database with similar cards that advertised slightly higher APRs.
Business card offerings shrink
the second issuer this month to trim its business card lineup. Discover
recently stopped offering the Discover Business card, which was the only business
card Discover offered. The Discover Business card was introduced in 2006 after
primarily focusing on personal credit cards. The issuer currently offers just
four cards on its website: The Discover "it" card, the Discover
"it" chrome card, the Discover "it" for students card and
the Discover "it" chrome for students card. All four offerings are
personal cards, rather than cards for small-business owners.
meanwhile, will continue to offer the CitiBusiness ThankYou in its retail
branches, according to Citi spokeswoman Emily Collins. But it's no longer
offering the business card online. Citi currently offers just one business card
on its website: The CitiBusiness AAdvantage Platinum Select card.
also recently pulled back on the number of business cards it offers online. For
example, in April, it stopped promoting the Chase Ink Classic card. It also
ceased promoting the Chase Ink Bold card. Now, it offers just two business
cards on its website: The Chase Ink Plus card and the Chase Ink Cash card.
the biggest card issuers, Bank of America currently offers the largest
selection of business credit cards. Customers who shop online currently have
nine BofA business cards to choose from, as well as one charge card.
Express offers small business owners the second largest selection of cards.
American Express currently offers eight business credit cards on its website and
four business charge cards.
U.S. Bank offers up seven business cards, while Capital One has six business credit
cards. Wells Fargo offers just three business credit cards online, including a
Card payments by businesses rise
a smaller selection of business cards to choose from, U.S. companies appear to
be using their cards more heavily. For example, the Wall Street Journal reported on Oct. 28 that the number of
business-to-business payments made by credit card, rather than check, has risen
sharply in recent years.
businesses still choose to pay for their supplies by check. But according to
the Wall Street Journal, at least 10 percent of business-to-business payments
made in 2014 are expected to be credit card payments.
Wills, a director at the consulting firm Hackett Group, told the Wall Street
Journal that the uptick in business-related card transactions is partially due
to business owners' growing preference for credit card-specific perks, such as
credit card fraud protection and month-long grace periods. Small businesses in
the media, construction and printing industries are especially fond of using
credit, said Wills.
See related: Fed ends special stimulus for economy
Published: October 29, 2014