July 31, 2008
Austin, Texas -- Annual percentage rates for select major credit card categories were largely unchanged this week, although APRs for low interest and student credit cards posted notable increases. Tomorrow's release of the July employment report could prove to be an economic focus.
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|
Already this week, gross domestic product data indicated second-quarter growth, although revised figures showed an economic contraction in the final months of last year amid a slowdown in consumer spending. Consumer expenditures account for approximately 70 percent of GDP.
Recessionary concerns may keep policymakers from raising interest rates this year. The Fed said Wednesday that it is extending lending programs to investment banks through January, citing "continued fragile circumstances in financial markets." Against that backdrop, the Fed is expected to leave interest rates unchanged at 2 percent when it next meets on Aug. 5.
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.