September 27, 2007
Austin, Texas - Credit card interest rates finally showed movement this week, in the wake of last Tuesday's Federal Reserve decision to loosen monetary policy. Although some rates fell, the full impact of the central bank's decision has yet to be felt by cardholders.
Among the popular credit card categories tracked by CreditCards.com, cash back, business, instant approval and student credit cards all posted lower average APRs.
A majority of banks index their credit card APRs to the prime rate, so the recent prime rate cut should result in decreased interest rates for consumers in the near term. According to the Fed, 54% of card issuers tie card interest rates to prime, with most banks adjusting variable rates 30 days or one billing cycle after a change in the prime rate. With the third quarter and the month wrapping up next week, more issuers could lower APRs shortly.
Low interest cards offered the most nominal APRs.
Rates for card categories tracked by CreditCards.com are listed below:
|Credit Card Rate Averages|
In spite of the Fed rate cut, several card categories actually saw their average annual percentage rates (APRs) increase somewhat due to the inclusion of additional credit card products in the rate tracking database.
The CreditCards.com credit card rate survey is conducted each week using data from the leading card issuers in the United States.
Introductory offer periods and actual regular interest rates can vary depending on 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 ten largest in the United States, based on credit card transaction volume. Through its website, https://www.creditcards.com/, 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.
For more information, contact:
Director of Marketing
NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to CreditCards.com.