May 22, 2008 Weekly Credit Card Rate Report

Austin, Texas - Annual percentage rates for select major credit card categories declined this week, but minutes from the latest Federal Reserve meeting hinted that the Fed would pause its rate-cutting activity. That approach to monetary policy would leave banks with little reason to further lower APRs on variable interest rate credit cards.

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.

Of the nine card categories tracked by, six had lower rates, two categories rose and one held steady.

Rates for card categories tracked by are listed below:

Credit Card Rate Averages
  Avg. APR Last Week 6 Month
Balance Transfer 10.19% 10.12% 11.56%
Business 10.76% 10.82% 13.71%
Low Interest 10.90% 10.88% 11.56%
Bad Credit 11.09% 12.49% 13.54%
Instant Approval 11.22% 11.72% 13.17%
Cash Back 11.41% 11.49% 12.36%
Reward 11.89% 11.90% 13.34%
Airline 13.34% 13.35% 14.94%
Student 14.86% 14.86% 16.72%
Updated: 05-22-08

The Fed minutes indicated that in light of previous actions, "most members" considered the late April decision to cuts interest rates a "close call." Going forward, many Fed officials believe further monetary policy loosening is unlikely even if the economy worsens.

The central bank's poor view of the economy was confirmed this week by Fed Vice Chairman Donald Kohn, who labeled economic conditions "quite difficult."

The 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.

About 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,, 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.  


Contact:, Austin
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