Credit Card Rates Continue to Rise
Credit card rates are continuing to tick upward, with the average rate for standard, non-reward cards approaching 14 percent, according to the weekly IndexCreditCards.com Credit Card Monitor.
The average interest rate for consumer credit cards with no rewards increased to 13.95% this week, up from 13.89% previously. (For those with excellent credit, the average rate topped 11% this week, up to 11.04% from 10.99%.) The average reward credit card rate rose to 15.35%, up from 15.28%. For those with excellent credit, the average rate increased to 12.94%. Student rates continue to rise, although at a slower pace than in the recent past. The average student credit card rate is now 16.17%, up from 16.14% previously, and up from 15.18% at the beginning of 2006.
Business credit card rates are now steadily rising, after a period of almost no movement. The average non-reward business credit card rate stands at 11.55%, while business credit cards with rewards offer an average rate of 13.62%. Despite the recent rises, these rates are up much less than consumer cards–the business categories began the year with average rates of 11.33% and 13.21%, respectively.
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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