Average Credit Card Rate Tops 14% After Latest Fed Rate Increase
The average consumer credit card rate jumped to 14.03% this week after yet another Federal Reserve quarter-point interest rate hike, according to the weekly IndexCreditCards.com Credit Card Monitor. The 14.03% average rate on non-reward consumer credit cards is an increase from last week’s 13.98%. The average rate when 2006 began was 12.60%. (For those with excellent credit, the current average rate is 11.11%, up from 11.08% last week.) The average reward credit card rate jumped as well, up to 15.53% from 15.44%. This rate was at 13.64% when 2006 began. For those with excellent credit, the average rate jumped to 13.10%, up from 13.02. The average student credit card rate also took a big leap, from 16.21% to 16.31%.
Business credit cards increased even more. The average non-reward business credit card rate increased to 11.96% from 11.80%, and the average rate for business credit cards with rewards increased to 13.86%, up from 13.74%. 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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