September 24, 2009
Austin, Texas — The national average annual percentage rate on new credit card offers rose to 12.32 percent, according to the CreditCards.com Weekly Credit Card Rate Report, despite the Federal Reserve's decision to leave a key lending rate unchanged.
The national average credit card APR is comprised of 95 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 average APRs in nine card categories, one increased, one decreased and seven were unchanged.
Rates for card categories tracked by CreditCards.com are listed below:
|Credit Card Rate Averages|
|Avg. APR||Last Week||6 Months ago|
| Source: CreditCards.com
Wednesday, the Fed announced it would leave the federal funds rate at a record low. The fed funds rate sets the prime rate, to which most variable rate credit cards pegged. The central bank also reiterated that it will keep rates "exceptionally low" for "an extended period."
According to analysts, the Fed's primary concern is removing stimulus too soon and allowing the economic recovery to stall. Despite the Fed's approach, analysts say most cardholders will continue to see interest rates rise.
The CreditCards.com credit card rate survey is conducted weekly, using offer data from the leading U.S. card issuers as found on their Web sites. 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 several 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.