July 17, 2008
Austin, Texas -- Annual percentage rates for select major credit card categories were mixed to lower this week, as the Federal Reserve is expected to leave interest rates unchanged for the remainder of 2008 amid challenges posed by both economic weakness and inflation.
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|
Acknowledging the "numerous difficulties" facing the U.S. economy during his semi-annual testimony to congress, Fed Chairman Ben Bernanke also labeled inflation "too high." That assessment followed data showing last month's consumer inflation rose at the quickest monthly pace since June 1982.
Separately, minutes from the Fed's most recent meeting also revealed inflationary concerns, with officials suggesting their next move "could well be an increase in the funds rate." However, as the outlook for growth and inflation "remained very uncertain," most Fed official believed "the timing and magnitude of future policy actions was quite unclear."
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.