November 26, 2008
Austin, Texas -- Annual percentage rates for new credit card offers mostly increased this week, according to the CreditCards.com Weekly Credit Card Rate Report, due to a change in the composition of cards offered rather than any APR increases by banks.
Of the nine credit card categories tracked by CreditCards.com, five advanced, two declined and two were unchanged.
Rates for card categories tracked by CreditCards.com are listed below:
|Credit Card Rate Averages|
|Avg. APR||Last Week||6 Month|
Card issuers may not stand pat on APRs for long, though. The Federal Reserve is expected to lower its key lending rate by half a percentage point in December, with some analysts calling for an additional cut to zero in early 2009. Banks generally follow the direction of the federal funds rate, currently at 1 percent, when setting rates on their variable rate credit cards.
Recent economic data makes action by the Fed look increasingly likely. Revised gross domestic product data released this week showed a 0.5 percent decline in the third quarter, with a larger drop predicted for the fourth quarter. Potentially weighing on that growth, consumer spending fell 1 percent in October.
The CreditCards.com credit card rate survey is conducted weekly using offer data from the leading U.S. card issuers. Rate movement may be 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 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 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.