Credit Card Rate Averages Continue Falling
May 19, 2008
On the heels of the latest Federal Reserve interest rate cut in late April, credit card rate averages are continuing to fall across the board, according to our Credit Card Monitor survey.
The average credit card rate for non-reward consumer credit cards is now 12.41%, down from 12.59% on May 2nd and 13.01% in early April. The average rate on credit cards with rewards fell to 14.27%, down from 14.38% in early May and 14.97% last month.
The averages listed above attempt to take into account the multiple tiers that many credit card issuers offer, instead of accounting for only the lowest listed rates. However, IndexCreditCards.com also tracks the very lowest listed rates, those reserved for customers with the very best credit. This week those averages are at 9.24% for non-reward consumer cards and 11.88% for consumer cards with rewards.
Small business credit card rates also continue to fall. The average rate for non-reward business credit cards is 10.52%, down from 10.80% on May 2, while the average rate for reward business credit cards stands at 11.79%, down from 12.14% previously.
While credit card companies continue to offer students much higher rates than the general consumer market, the average student card rate is a bit less painful than usual, having fallen to 14.44% this week, down from 14.57% on May 2, and 14.84% last month.
Financial institutions represented in the survey include Advanta, American Express, Bank of America, Capital One, Chase, Citi, Discover, National City, Pulaski Bank, U.S. Bank, Washington Mutual, Wells Fargo and more.
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1.Discover® More Card - 0% APR on balance transfers for 12 months & 6 months on purchases, 5% cashback bonus in popular categories, up to 1% cashback bonus on all other purchases
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2.Chase Freedom Card - 0% Intro APR and no Annual Fee, 5% bonus cash back in popular categories , 1% cash bank on everything else
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3.Citi® Platinum Select® MasterCard® - 0% on purchases & balance transfers for Up to 18 months, APR as low as 9.99% variable. $30 statement credit.
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4.Blue Cash® from American Express - Earn up to 5% cash back on gas, groceries and drug store purchases, and up to 1.5% back on all other purchases, no annual fee, fast approval under 60 seconds
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6.American Express® Gold Card - 10,000 American Express Membership Rewards bonus points when you use the card for at least $500 in purchases within the first 3 months.
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7.TrueEarnings® Business Card from Costco & American Express - 4% cash back for annual gas purchases up to $6,000, 3% restaurants, 2% travel, 1% everywhere else, 0% APR on purchases for first 6 months
