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

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)