BACK

Research and Statistics

Credit card interest rates rise for fourth straight week

Summary

Interest rates on new credit card offers tiptoed higher this week, according to the CreditCards.com Weekly Credit Card Rate Report, marking the fourth consecutive weekly increase.

The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars. However, we may receive compensation when you click on links to products from our partners. Learn more about our advertising policy.

The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Please see the bank’s website for the most current version of card offers; and please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.

Interest rates on new credit card offers tiptoed higher this week, according to the CreditCards.com Weekly Credit Card Rate Report, marking the fourth consecutive weekly increase.

CreditCards.com’s Weekly Rate Report
Avg. APRLast week 6 months ago
National average14.35%14.33%12.98%
Low interest12.04%12.04%11.97%
Cash back12.63%12.63%12.49%
Balance transfer12.93%12.88%12.09%
Business12.96%12.96%10.74%
Student13.96%13.96%14.51%
Airline14.46%14.46%13.60%
Reward14.57%14.55%13.42%
Instant approval15.99%15.99%13.32%
Bad credit20.32%20.32%13.74%
Methodology: The national average credit card APR is comprised of 95 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.)
Source: CreditCards.com
Updated: 6-23-2010

The current stretch of annual percentage rate (APR) increases is the longest in more than a year and boosts the national average rate on new card offers to 14.35 percent.

Still reeling from the Credit CARD Act‘s regulations and stubbornly high unemployment, issuers remain cautious about lending, experts say. “The wounds from the recession remain fresh and competition for new cardholders is much more moderate and selective — the ‘new normal’ is shaping up to be an environment with more-disciplined issuers as well as consumers,” says John Grund, co-manager of the card issuing practive area of First Annapolis Consulting. “Most pre-recession and pre-CARD Act reference points are obsolete,” Grund says.

This week, Citi switched its CitiForward card’s APR from a range of 12.99 to 20.24 percent to a single rate of 14.24 percent. Because CreditCards.com’s rates calculations are based on the low end of any ranges, the change to a single rate was viewed as an increase. Citi didn’t respond to requests for comment.

Citi’s was the biggest move of the week, but it wasn’t the only one. Navy Federal Credit Union continued to adjust its offers, slightly boosting rates on its Cash RewardsVisa card and the top end of the APR range for its Platinum MasterCard. While the credit union didn’t provide a new comment, Navy Federal did point to its statement following card changes last week, which indicated that its card pricing is re-evaluated on an ongoing basis.

These card offer adjustment continue to make borrowing on plastic more expensive. For example, a typical cardholder who borrowed $5,000 on a credit card today and consistently paid $150 per month at today’s average interest rate would have to pay $6,417 to pay off the debt. That’s $182 more than would have been required six months ago. (Calculator: How long will it take to pay off your credit card balance?)

See related: Capital One move pushes APRs higher for 3rd straight week, Credit card lending standards keep tightening, Fed report says, Credit card reform arrives in the form of the Credit CARD Act, Calculator: How long will it take to pay off your credit card balance?Credit card rates: interactive graphic on APR changes

What’s up next?

In Research and Statistics

5 steps to dispute a debt that’s not yours

Identity mix-ups are common, but if you’re being tagged for debt that is not yours, you need to fix the problem instead of ignoring it.

Published: June 21, 2010

See more stories
Credit Card Rate Report Updated: June 19th, 2019
Business
15.61%
Airline
17.54%
Cash Back
17.68%
Reward
17.57%
Student
17.79%

Questions or comments?

Contact us

Editorial corrections policies

Learn more

Join the Discussion

We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company’s business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.