May 08, 2008
Austin, Texas - Annual percentage rates for select major credit card categories edged lower this week, as banks appeared to play catch-up following last week's Federal Reserve rate cut. Following that decision, a smaller-than-expected decline in April payrolls appeared to support a pause in the Fed's rate-cutting campaign.
Still, cardholders need all the rate relief they can get, since recent reports show that consumers are increasingly relying on their credit cards even as approval standards for plastic become tougher.
Of the nine card categories tracked by CreditCards.com, seven had lower rates, one category rose and one remained unchanged.
Rates for card categories tracked by CreditCards.com are listed below:
|Credit Card Rate Averages|
|Avg. APR||Last Week||6 Month|
|For Bad Credit||12.49%||12.49%||13.64%|
A generally solid round of retail sales reports for April indicated that consumers made use of their credit cards last month. However, with earnings down and prices up, consumers often need their credit cards to pay for basic necessities.
The retail sales news followed Fed data showing that credit card usage climbed in March, even as credit card loan standards tightened in the first quarter of this year.
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.