April 10, 2008
Austin, Texas - Annual percentage rates for select major credit card categories were mostly unchanged to lower this week, as Federal Reserve minutes revealed internal disagreement about the size of last month's three-quarter point interest rate cut.
According to the Fed, 57 percent of banks index their credit card APRs to the prime rate, with most adjusting variable rates 30 days or one billing cycle after the prime rate changes.
Rates for card categories tracked by CreditCards.com are listed below:
|Credit Card Rate Averages|
|Avg. APR||Last Week||6 Month|
|For Bad Credit||12.49%||12.49%||14.12%|
"With the uncertainties in the outlook for both economic activity and inflation elevated, members noted that appropriately calibrating the stance of policy was difficult" because it would take time to see the effect of earlier rate cuts, the Fed said in the minutes of its March 18 meeting. The Dallas and Philadelphia Fed bank presidents opposed the rate cut, preferring less aggressive moves.
Retailers posted weak March sales as consumers restricted their purchases to food and other non-discretionary purchases. The Fed also reported a slowdown in credit card use during February.
The CreditCards.com credit card rate survey is conducted weekly using data from the leading U.S. card issuers. Rate movement may also have been influenced by changes in the composition of offers tracked.
Introductory offer periods and regular interest rates vary with applicants' credit quality and issuer risk-based pricing policies.
CreditCards.com is a leading online credit card marketplace connecting consumers with multiple credit card issuers, including nine of the ten largest in the United States, based on credit card transaction volume. Through its website, https://www.creditcards.com/, CreditCards.com enables consumers to search for, compare and apply for more than 150 credit cards and offers credit card issuers an online channel to acquire qualified applicants.
Ben Woolsey, 512-996-8663, ext. 106
Director of Marketing
NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to CreditCards.com.