Credit Card Rates Up, Cash Back Cards Especially Hit
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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