CreditCards.com: Weekly Credit Card Rate Report
Wednesday, November 26, 2008
Austin, Texas -- Annual percentage rates for new credit card offers mostly increased this week,
according to the CreditCards.com Weekly Credit Card Rate Report, due to a change in the
composition of cards offered rather than any APR increases by banks.
Of the nine credit card categories tracked by CreditCards.com, five advanced, two declined and
two were unchanged.
Rates for card categories tracked by CreditCards.com are listed below:
Credit Card Rate Averages
6 months ago
Card issuers may not stand pat on APRs for long, though. The Federal Reserve is expected to
lower its key lending rate by half a percentage point in December, with some analysts calling for
an additional cut to zero in early 2009. Banks generally follow the direction of the federal funds
rate, currently at 1 percent, when setting rates on their variable rate credit cards.
Recent economic data makes action by the Fed look increasingly likely. Revised gross domestic
product data released this week showed a 0.5 percent decline in the third quarter, with a larger
drop predicted for the fourth quarter. Potentially weighing on that growth, consumer spending
fell 1 percent in October.
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
Introductory offer periods and regular interest rates vary with applicants’ credit quality and
issuer risk-based pricing policies.