Wednesday, August 30, 2017

CreditCards.com Weekly Credit Card Rate Report: Average card APR climbs to another all-time high

Austin, Texas — The average interest rate for new credit card offers remained at a record high Wednesday for the third consecutive week, according to the CreditCards.com Weekly Credit Card Rate Report.

The average 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. Introductory (teaser) rates are not included in the calculation.

Rates for card categories tracked by CreditCards.com are listed below:

Credit Card Rate Averages
  Avg. APR Last Week 6 Months ago
National Average 16.14% 16.14% 15.50%
Low Interest 12.88% 12.88% 12.36%
Balance Transfer 15.37% 15.37% 14.76%
Business 13.68% 13.68% 13.41%
Student 15.70% 15.70% 13.67%
Cash Back 16.37% 16.37% 15.61%
Airline 16.06% 16.06% 15.40%
Reward 16.23% 16.23% 15.57%
Instant Approval 18.60% 18.60% 18.09%
Bad Credit 23.46% 23.46% 23.01%
Source: CreditCards.com
Updated: 8-30-17

None of the cards tracked by CreditCards.com advertised new rates. As a result, the national average APR stayed at 16.14 percent — the highest average APR CreditCards.com has recorded since it began tracking rates in mid-2007.

Average rates have remained at record highs for most of 2017. Since January 1, the average card APR has climbed by more than three quarters of a percentage point. At the beginning of the year, the average rate on a new card offer was just 15.36 percent.

The Federal Reserve's periodic rate hikes are responsible for most of the increases. When the Fed changes its benchmark rate, most cards match it by the same amount.

The CreditCards.com credit card rate survey (permalink: http://www.creditcards.com/rate-report) is conducted weekly, using offer data from leading U.S. card issuers' websites. Introductory offer periods and regular interest rates will vary with applicants' credit quality and issuer risk-based pricing policies.

About CreditCards.com
CreditCards.com is the leading online credit card marketplace connecting consumers with multiple credit card issuers, including a majority of the 10 largest in the United States, based on credit card transaction volume. CreditCards.com, http://www.creditcards.com, enables consumers to search for, compare and apply for credit cards and offers credit card issuers an online channel to acquire qualified applicants.

For more information, contact:

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Matt Schulz
Senior Industry Analyst
matt.schulz@creditcards.com
512-996-8663, ext. 103

NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to CreditCards.com.

Source: CreditCards.com