Business Customers Enjoy Sweet Credit Card Deals as Competition Heats Up
Business Customers Enjoy Sweet Credit Card Deals as Competition Heats Up Average Rates Moving Down While Consumer Rates Shoot Up In an escalating interest rate environment, the average credit card rate for business credit cards actually went down this week, according to the weekly IndexCreditCards.com Credit Card Monitor. Consumer rates, on the other hand, continued their upward climb.
So far, 2006 has been a year of steady rate increases in the consumer credit card market. The average credit card rate for standard, non-reward credit cards increased to 13.33% this week, up from 12.60% at the beginning of 2006. Compare this to non-reward business credit cards and you find a significant difference. This week the average non-reward business credit card rate fell to 11.30%, just a shade less than when it started the year at 11.33%. Of note was Citi’s move to chop the rate on its CitiBusiness card down two full percentage points, to 10.49% from 12.49%.
Citi also added a 12-month 0% interest introductory offer to sweeten the deal. And they’re not the first issuer to increase its aggressiveness in courting small business owners. “For a while now card issuers have been holding rates steady for business customers,” says Justin McHenry, Research Director for IndexCreditCards.com. “But to see an actual decrease in the average rate during a time of consistent hikes for consumers is surprising.
It tells you there’s money to be made in the small business niche, and that no one is dominating that space right now.” Credit card rates were steady in most other consumer and business credit card segments this week:
- Average rate for reward credit cards offering rewards ticked up to 14.46%, from 14.44% last week and 13.80% at the beginning of 2006.
- Business credit cards offering rewards did not follow the non-rewardcards’ movement backward, but neither did they move forward.The average rate remained at 13.42% for the third straightweek, although up a bit from the 13.21% average rate at the beginning of the year.
- Average credit card rates for college students remained steady (foronce), at 15.87%. Nevertheless, that number has jumped mightily from the 15.18% average at the beginning of 2006.
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.
Disclaimer:The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.
This content is not provided by any company mentioned in this article. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any such company. CardRatings.com does not review every company or every offer available on the market.
Published (Modified )