Credit Card Rates Rise Again, Due for a Lull
Average credit card rates rose again this week, but with most every major issuer having implemented increases this year, rates should hold steady in the near term, according to the weekly IndexCreditCards.com Credit Card Monitor.
The average credit card rate for standard, non-reward credit cards jumped to 13.27% this week, up from 13.17% a week ago and 12.60% at the beginning of 2006. Credit cards offering rewards had an average rate of 14.33%, up from 14.26% last week and 13.80% at the beginning of the year. For consumers with the very best credit ratings, those averages are 10.53% and 11.79%, respectively.
Credit cards marketed to college students continue to raise their rates as well. The average student credit card rate is now 15.84%, up from 15.77% last week and 15.18% at the beginning of the year. Business credit card rates rose also, although as a group they continue to offer the lowest rates. The average non-reward business card offers a 11.49% APR, up from 11.43% last week and 11.33% on January 1. Business credit cards offering rewards have an average 13.42% APR, up from 13.36% last week and 13.21% at the year’s start.
“After a surprising rise in the first month and a half of this year, rates should hold steady for at least a short while,” says Adam Jusko, Research Director of IndexCreditCards.com. “They almost have to–everyone’s already raised their 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.
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