February 24, 2010
Austin, Texas — Interest rates on new credit card offers leaped higher this week, according to the CreditCards.com Weekly Credit Card Rate Report, as banks squeezed in their final rate increases ahead of the new credit card reform law.
The national average credit card annual percentage rate (APR) was 14.62 percent, marking the highest level since tracking began in 2007. The average is comprised of about 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 below. Introductory (teaser) rates are not included in the calculation. Among the average APRs in nine card categories, six rose, one fell and two were unchanged.
Rates for card categories tracked by CreditCards.com are listed below:
|Credit Card Rate Averages|
|Avg. APR||Last Week||6 Months ago|
Credit card APRs rose steadily over the months prior to the enactment of the Credit CARD Act's major provisions, which took effect on Monday. Citi, one of the many issuers that recently hiked APRs, acknowledged that its recent pricing adjustments stemmed from higher losses due to delinquent cardholders as well as the limitations the CARD Act places on its ability to reprice for risk.
The CreditCards.com credit card rate survey is conducted weekly, using offer data from the leading U.S. card issuers' Web sites. Introductory offer periods and regular interest rates will vary with applicants' credit quality and issuer risk-based pricing policies.
CreditCards.com is the leading online credit card marketplace connecting consumers with multiple credit card issuers, including several of the 10 largest in the United States, based on credit card transaction volume. CreditCards.com, https://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.
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.