Credit Card Rate Averages Mixed; Reward Rates Rise
June 2, 2008Â
While average rates in most credit card categories dipped slightly this week, the average rate for reward credit cards actually rose, indicative of the repricing being done by several issuers on select cards. From this point forward, we at IndexCreditCards.com doubt any further rate cuts will be coming — even if the Federal Reserve cuts interest rates again later this month, we believe many card companies will re-price their offerings for new customers, taking away any benefit the Fed might be seeking to give.
The average credit card rate for non-reward consumer credit cards is now 12.38%, down from 12.41%, and setting a new two-year low in our survey.
However, the average rate on credit cards with rewards rose to 14.38%, up from 14.27% two weeks ago, and identical to the average rate calculated at the beginning of May. Looking at these numbers, we can say that the April 30 Federal Reserve interest rate cut has been erased as far as reward credit cards are concerned; after an initial dip, rates are right back to where they were before the cut.
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 9.22% for non-reward consumer cards and 12.04% for consumer cards with rewards.
Small business credit card rates continue to fall. The average rate for non-reward business credit cards is 10.43%, down from 10.52% two weeks ago and 10.80% on May 2. The average rate for reward business credit cards stands at 11.71%, down from 11.79% two weeks ago, and 12.14% at the beginning of May.
Student credit card rates dipped slightly in this week’s survey. The average student card rate is 14.41%, down from 14.44% on May 19, and 14.57% on May 2.
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
