August 30, 2007
Austin, Texas - Credit card interest rates continued to show stability across all popular card categories this week as the summer draws to an end, despite recent economic turbulence and prime rate cut speculation.
Potential prime rate changes are noteworthy to those cardholders that revolve balances each month because a majority of credit card issuers base their variable credit card APRs on an index tied to the prime rate. According the central bank, 54% of card issuers utilize the prime rate as their lending benchmark.
Rates for card categories tracked by CreditCards.com are listed below:
|Credit Card Rate Averages|
According to a recent letter quoted in today's Wall Street Journal from Fed Chairman Ben Bernanke to Senator Charles Schumer (D-NY), Fed policy makers would "act as needed" to protect the overall economy from the markets' recent turmoil. This communication fueled speculation of a pending cut to the federal funds rate, which would ripple through to consumers.
According to the Fed's most recent consumer credit statistical release, the average long term APR across all existing credit card accounts has remained constant over the past few months at 13.46%.
The CreditCards.com credit card rate survey is conducted each week using data from the leading credit card issuers in the United States.
Introductory offer periods and actual regular interest rates can vary depending on individual applicants' credit quality and issuer risk-based pricing policies.
CreditCards.com is a leading online credit card marketplace, bringing consumers and credit card issuers together. At its free website, www.creditcards.com, consumers can compare more than 150 credit card offers from the nation's leading issuers and banks, and apply securely online. CreditCards.com is also a destination site for consumers wanting to learn more about credit cards; offering advice, news, features, statistics and tools - all designed to help consumers make smart choices about credit cards. In 2006, over 12 million unique visitors used CreditCards.com to search for their next credit card.
For more information, contact:
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NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to CreditCards.com.