November 3, 2010
Austin, Texas—The national average interest rate on new credit card offers shot to a record high this week, according to the CreditCards.com Weekly Credit Card Rate Report, following a rate hike on Walmart’s Discover card.
The average is composed of about 100 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 (teaser) rates are not included in the calculation. Among the nine card categories, average annual percentage rates (APRs) rose in one, fell in three and were unchanged in five.
Rates for card categories tracked by CreditCards.com are listed below:
|Credit Card Rate Averages|
|Avg. APR||Last Week||6 Months ago|
The national average reached the highest level since tracking began in 2007, after the Walmart Discover card’s APR changed to 22.90 percent for all new cardholders. That card had previously featured a rate range of 13.90 percent to 22.90 percent.
While the card issuer was unavailable for comment, analysts say lenders continue to raise APRs amid high unemployment -- which increases the likelihood of unpaid bills -- and the Credit CARD Act's restrictions on the re-pricing of cards based on increasing risk.
The CreditCards.com credit card rate survey is conducted weekly, using offer data from the leading U.S. card issuers' websites. 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 a majority 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.