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Credit Card Rates Up for Sixth Straight Week

by Peter Andrew

NOTE:

To offer our weekly summary of credit card rates, Credit

Card Monitor, in your publication or on your Web site, please

contact syndicate@indexcreditcards[dot]com.

 


Credit

Card Rates Up for Sixth Straight Week With

several major banks raising rates, credit card financing became

more expensive for the sixth straight week, according to the

IndexCreditCards.com weekly Credit Card Monitor. American

Express and Bank of America were two of the larger issuers applying

increases.

"Top-level" consumer credit cards averaged a 9.87% Annual Percentage

Rate (APR), up from 9.76% last week and from 9.51% just six

weeks ago. (IndexCreditCards.com uses "top-level" to describe

Platinum or similarly designated credit cards that generally

offer the lowest interest rates to eligible cardholders.)

"Even consumers with great credit will soon have difficulty

getting rates under 10%," says Justin McHenry, Research Director

for IndexCreditCards.com. "There were a lot of hikes this week,

including Pulaski Bank increasing the rates on their popular

low interest cards by a full one percent."

While top-level business credit card rates also increased this

week, to a 9.99% average APR, these rates have moved slower,

up from 9.87% six weeks ago. "I think consumer credit card rates

will go higher than the rates of business cards soon," says

McHenry. "Business credit cards are more likely to have fixed

rates, so the averages move up more slowly. For small business

people who've been relying on low-rate personal cards for certain

business expenses, it may be time to switch to a business card."

IndexCreditCards.com's Credit Card Monitor also tracks the following

categories, all of which have seen higher averages this week

and over the last six weeks:

  • Consumer

    reward cards rose to an average 11.19% APR, up from 10.75%

    six weeks ago. This category has the highest average rate

    increase over that period.

  • Business

    reward credit cards rose to an average 11.74% APR, up from

    11.31% six weeks ago.

  • Student

    credit card rates increased to 14.96%, up from 14.72% six

    weeks ago.

"As always, these averages are based on the lowest rates published

by the card issuers," says McHenry. "If you don't have excellent

credit, add 2% to estimate the rate you would likely receive.

If your credit is poor, count on even higher rates."

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 11/16/05 (Modified 05/07/12)


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1 Responses to "Credit Card Rates Up for Sixth Straight Week"
  1. Jay Gould January 17, 2012 at 12:28 am

    Card issuers sent out 4 billion credit card offers by mail last year, 3 times as many as the 2009 total, according to data from Synovate. These numbers are not really surprising, as the improvement in the economy was expected to restore the banks' willingness to hand out new credit. What is surprising is how far most issuers are willing to go in doing so. The very high overall quality of the offers, with incredible sign-up bonuses and rewards programs, makes one wonder whether the issuers are really that desperate to attract new customers or are they actually forced to be so generous, because Americans are just not all that interested in what they have to offer.

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