April 24, 2008
Austin, Texas - Annual percentage rates for select major credit card categories largely jumped higher this week, ahead of next week's Federal Reserve decision on interest rates.
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%||13.36%|
The Fed is expected to trim interest rates by a quarter percentage point next week, which would amount to the smallest cut so far this year. However, with some Fed officials worried that further cuts could drive up inflation, the possibility remains that rates could be left unchanged.
In the language accompanying its decision, the central bank may indicate that it plans to take a break after aggressively slashing interest rates since September of last year. Such a pause could give policymakers time to determine whether their actions so far are enough to help boost the economy later this year.
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.