Business Editors/Financial Editors
AUSTIN, Texas--(BUSINESS WIRE)--September 18, 2008--Annual percentage rates for new credit card offers held steady this week, according to the CreditCards.com Weekly Credit Card Rate Report, after the Federal Reserve left a key short-term interest rate unchanged.
Of the nine credit card categories tracked by CreditCards.com, six rose and three remained flat, reflecting a reshuffling of online card offers rather than APR changes by issuers.
Rates for card categories tracked by CreditCards.com are listed below:
Credit Card Rate Averages
Avg. APR
Last Week
6 Month
Balance Transfer
9.72%
9.59%
9.72%
Business
11.30%
10.50%
10.89%
Low Interest
10.76%
10.74%
10.84%
Bad Credit
10.87%
10.87%
13.02%
Cash Back
11.36%
11.14%
11.44%
Instant Approval
11.52%
11.52%
10.14%
Reward
12.13%
12.06%
11.78%
Airline
12.98%
12.87%
13.12%
Student
14.66%
14.66%
15.57%
Source: CreditCards.com
Updated: 9-18-08
Expressing "significant concern" about the threats from both economic weakness and inflation, the Fed's rate-setting committee members voted unanimously to hold the federal funds rate at 2 percent. That leaves an unchanged prime rate, which banks use to set APRs on variable rate cards.
However, analysts who spoke to CreditCards.com indicated that regardless of the Fed's decision, the most likely direction for credit card APRs is upward, as banks seek to guard their profits against card delinquencies and general economic weakness. In just the past week, the U.S. financial sector has been shaken by Lehman Brothers' bankruptcy filing and a government rescue of troubled insurance giant AIG.
The CreditCards.com credit card rate survey is conducted weekly using offer data from the leading U.S. card issuers. Rate movement may be influenced by changes in the composition of offers tracked.
Introductory offer periods and regular interest rates vary with applicants? credit quality and issuer risk-based pricing policies.
About CreditCards.com
CreditCards.com is a leading online credit card marketplace connecting consumers with multiple credit card issuers, including nine of the 10 largest in the United States, based on credit card transaction volume. CreditCards.com,
http://www.creditcards.com
, enables consumers to search for, compare and apply for more than 150 credit cards and offers credit card issuers an online channel to acquire qualified applicants.
NOTE TO EDITORS: The information in this release is available for print or broadcast with attribution to CreditCards.com.
CreditCards.com
Ben Woolsey, 512-996-8663 x106
Director of Marketing
benw@creditcards.com
State Keywords: Texas
Industry Keywords: Other Consumer; Technology; Internet; Other Technology; Public Policy/Government; Government Agencies; Public Policy; White House/Federal Government; Professional Services; Banking; Finance; Other Professional Services; Consumer
Source: CreditCards.com
