October 02, 2008

CreditCards.com: Weekly Credit Card Rate Report

Austin, Texas -- Annual percentage rates for new credit card offers lacked a clear direction this week, according to the CreditCards.com Weekly Credit Card Rate Report, as HSBC and Capital One tweaked some of their card offers.

Of the nine credit card categories tracked by CreditCards.com, three increased, four fell and two remained flat.

Rates for card categories tracked by CreditCards.com are listed below:

Credit Card Rate Averages
  Avg. APR Last Week 6 Month
Balance Transfer 10.08% 9.70% 9.81%
Business 11.43% 11.30% 10.46%
Low Interest 10.73% 10.77% 10.78%
Bad Credit 10.87% 10.87% 12.49%
Cash Back 11.65% 11.46% 11.55%
Instant Approval 11.58% 11.73% 9.94%
Reward 11.77% 12.21% 11.72%
Airline 12.60% 13.14% 12.52%
Student 14.66% 14.66% 15.30%
Source: CreditCards.com
Updated: 10-02-08

In a potential turnaround from an earlier focus on inflation, analysts speculate the Fed may decide to further trim interest rates amid recession fears and turmoil in the financial sector, even if Congress passes a $700 billion economic stabilization plan. Such Fed action would lower the prime rate, which banks use to set APRs on variable rate cards.      
Supporting that potential move, data showed manufacturing activity slid to its lowest level since October 2001 and indicated contraction in that sector. A report today revealed weekly jobless claims remained at their highest level in seven years, with a broader snapshot of the job market due out tomorrow in the form of September's employment report.  

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.

About CreditCards.com
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.  



CreditCards.com, 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 CreditCards.com.

Source: CreditCards.com