September 11, 2008
Austin, Texas -- Annual percentage rates for new credit card offers moved all over the place this week, as several banks changed APRs, according to the CreditCards.com Weekly Credit Card Rate Report.
Credit card issuers tweaked their offers amid ongoing economic weakness, though a recent easing of inflation suggests to analysts that the Federal Reserve will leave a key short-term interest rate unchanged when it meets on Sept. 16. Of the nine credit card categories tracked by CreditCards.com, four declined, three rose 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|
Just a few months ago, rising oil prices and inflation worries had some analysts predicting the Fed would soon boost a key short-term interest rate. However, the outlook has recently changed. Continuing economic troubles and easing inflation mean the Fed's benchmark interest rate may hold steady into 2009. That would leave an unchanged prime rate, which banks use to set APRs on variable rate cards.
Further confirmation of the economy's weakness came Friday, as unemployment topped 6 percent for August, the highest jobless rate in nearly five years.
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.