June 26, 2008
Austin, Texas - Annual percentage rates for select major credit card categories dipped lower this week, after the Federal Reserve left interest rates unchanged on Wednesday for the first time since last summer.
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. With no change to prime, banks can leave credit card rates alone.
Rates for card categories tracked by CreditCards.com are listed below:
|Credit Card Rate Averages|
|Avg. APR||Last Week||6 Month|
The Fed held interest rates at 2 percent but emphasized higher prices, saying, "Upside risks to inflation and inflation expectations have increased." The central bank must weigh rising inflation against the need for economic growth, with the latest gross domestic product data showing the economy expanded more than previously thought in the first quarter.
Based on its language, the Fed's next decision on Aug. 5 remains uncertain. "The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability," it said.
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.