June 25, 2009
Austin, Texas —The national average annual percentage rate on new credit card offers was barely lower this week, according to the CreditCards.com Weekly Credit Card Rate Report, after the Federal Reserve announced plans to maintain its key lending rate at historically low levels "for an extended period."
The national average credit card APR is comprised of 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, or teaser, rates are not included in the calculation.) Among averages in nine card categories, one declined and eight were unchanged.
Rates for card categories tracked by CreditCards.com are listed below:
|Credit Card Rate Averages|
|Avg. APR||Last Week||6 Months ago|
The Fed's decision to leave its federal funds rate unchanged did not surprise analysts, who nevertheless say an economic recovery will eventually prompt a reversal of current monetary policy initiatives, including finally boosting the fed funds rate. That would, in turn, lift banks' prime rate -- which is pegged to the fed funds rate -- and by extension, increase the APRs for variable rate credit cards tied to prime.
The CreditCards.com credit card rate survey is conducted weekly using offer data from the leading U.S. card issuers as found on their 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.