Business Customers Enjoy Sweet Credit Card Deals as Competition Heats Up
Business
Customers Enjoy Sweet Credit Card Deals as Competition Heats Up Average Rates Moving Down While Consumer Rates Shoot Up In an escalating interest rate environment, the average credit card rate for business credit cards actually went down this week, according to the weekly IndexCreditCards.com Credit Card Monitor. Consumer rates, on the other hand, continued their
upward climb.
So far, 2006 has been a year of steady rate increases in the consumer credit card market. The average credit card rate for standard, non-reward credit cards increased to 13.33% this week,
up from 12.60% at the beginning of 2006.
Compare
this to non-reward business credit cards and you find a significant difference. This week the average non-reward business credit card rate fell to 11.30%, just a shade less than when it started the year at 11.33%. Of note was Citi's move to chop the rate on its CitiBusiness card down two full percentage points, to 10.49% from 12.49%. Citi also added a 12-month 0% interest introductory offer to sweeten the deal. And they're not the first issuer
to increase its aggressiveness in courting small business owners.
"For
a while now card issuers have been holding rates steady for business customers," says Justin McHenry, Research Director for IndexCreditCards.com. "But to see an actual decrease in the average rate during a time of consistent hikes for consumers is surprising. It tells you there's money to be made in the small business niche, and that no one is dominating that space
right now."
Credit
card rates were steady in most other consumer and business credit
card segments this week:
- The average
rate for reward credit cards offering rewards ticked up to
14.46%, from 14.44% last week and 13.80% at the beginning
of 2006.
- Business
credit cards offering rewards did not follow the non-reward
cards' movement backward, but neither did they move forward.
The average rate remained at 13.42% for the third straight
week, although up a bit from the 13.21% average rate at the
beginning of the year.
- Average
credit card rates for college students remained steady (for
once), at 15.87%. Nevertheless, that number has jumped mightily
from the 15.18% average at the beginning of 2006.
Financial institutions represented in the survey include Advanta, American Express, Bank of America, Capital One, Chase, Citi, Discover, MBNA, National City, Providian, Pulaski Bank, U.S.
Bank, Wachovia, Wells Fargo and more.
Published 03/08/06 (Modified 05/07/12)
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