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Credit Card Rates Up, Cash Back Cards Especially Hit

by Peter Andrew


Credit Card Rates Up, Cash Back Cards Especially Hit

Rate hikes in line with the recent Federal

Reserve rate increase are still making their way through the

credit card industry, pushing average rates higher again this

week, according to the weekly IndexCreditCards.com Credit Card

Monitor. In addition, in a development sure to upset reward

seekers, cash back credit cards are becoming more expensive

for those who carry balances.

The average rate for non-reward consumer credit cards increased

to 13.45% this week, up from 13.40% last week. For consumers

with the highest credit scores, that average is 10.68%, up from

10.64% last week.

Reward

credit cards took a big jump for the second straight week, up

to an average APR of 15.08% from 14.75% last week and 14.46%

the week before. For consumers with excellent credit, the average

reward card rate increased to 12.67%, from 12.23% last week.

In the last

two weeks, both Citi and Capital One have increased the rates

on their cash back credit cards (the Dividend Platinum Select

and the No Hassle Cash Rewards cards, respectively) by more

than 4 percent.

Student

credit card rates hit the 16 percent mark this week, up from

15.94% last week. The average student rate is up exactly three-quarters

of a point since starting the year at 15.25%.

For business

credit card holders, the news continues to be brighter. No changes

in rates this week, with the average non-reward business card

rate remaing at 11.33%, and the average reward

business card rate at 13.44%%.

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 04/10/06 (Modified 05/07/12)


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