Federal interest rate cuts continue to bring down average credit card rates, with the average interest rate for non-reward credit cards dipping below 14% this week, according to our IndexCreditCards.com Credit Card Monitor. Averages in this report do not even take into account the surprise 0.75% cut in Federal interest rates announced this week. We expect average credit card rates to drop another half-percent in the next two months or so, in response to the Fed’s latest big move. (About 70% of credit cards have variable rates that rise and fall in step with Federal interest rates.)

The average rate for non-reward consumer credit cards is now 13.98%, down from 14.22% in November, and down from 14.41% at the beginning of October. For credit cards offering reward programs, the average rate decreased to 15.61%, down from 15.81%. (For those with the very best credit scores, average rates on non-reward and reward credit cards are currently 10.65% and 13.11%, respectively.)

Average rates on business credit cards are falling as well. The average non-reward business credit card rate fell to 12.05%, from 12.33%, and the average rate on business credit cards that offer rewards fell to 13.48%, down from 13.90%.

While students still have the worst rates in the market, things are better than they’ve been in the recent past. The average student credit card rate is now 16.14%, down from 16.49% in November.

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.

Published 01/24/08 (Modified 04/20/12)