Credit Card APR Rates Are Holding Steady In 2012
The general consensus of the economy in 2012 so far is that things remain unchanged, but that there is some hope and improvement in a few sectors, including in credit cards.
CreditCards.com, which is a competitor to CreditCards.net, published a report of the interest rates on new credit card offers as of August 1, 2012 as it relates to the week prior and six months prior. The interest rates analysis is also separated by different types of credit cards.
According to CreditCards.com, the national average interest rate on new credit card offers, excluding any offers that contain introductory or teaser rates, is 14.97%, which is identical to the APR as it stood last week and nearly the same as it was six months ago when the national average APR was 14.91%.
Low interest rate credit cards, which are typically offered to parties with exceptional credit, are identical in all three categories (today, last week, and six-months ago) is at 10.40%.
Balance transfer interest rates on new credit card offers as of August 1, 2012 was at 12.62%, which is unchanged from last week. Six months ago, the APR rate for balance transfer credit cards was 12.60%. This rate is usually different from the APR assigned to all new purchases made on that same credit card and is always an important number to separate when signing up for a new credit card, because it will play a factor in whether to transfer a balance from another card in part, in whole, or at all.
Business credit card APR rates are holding today at 13.13%, which is the same as it was last week and six months ago.
Student credit card offers as of August 1, 2012 were averaging an interest rate of 13.02%, which is the same as it was last week. This interest rate is down from six months ago when the average interest rate offered on student credit cards was 13.77%.
Credit cards that offer rewards programs that include cash back, miles, or other types of reward points often have higher interest rates because the credit card issuers are essentially returning money paid on that interest payment, to the cardholder, in the form of miles or points and the credit card issuer needs to cover that expense with an additional point or two in interest. Cash back credit card offers as of August 1, 2012 were at approximately 14.43%, which is unchanged from last week and substantially similar as six months ago when the rate was 14.45%. Airline or miles credit cards are offering interest rates averaging 14.63%, which is also unchanged since last week, but for which is a slightly higher than six months ago when it was 14.54%. And finally, general reward credit card interest rates are holding today at 14.81%, which is unchanged from last week. This average interest rate is also a little higher than six months ago when the rate was 14.73%.
Instant approval interest rates on new credit cards as of August 1, 2012 is at 15.49%, which is unchanged from last week and six months ago. This interest rate is often higher because the credit card issuer is extending credit based on less factors than is normally considered with a typical application for another type of credit card.
Finally, the interest rate for credit cards for bad credit, which will understandably assign high interest rates because of the risk associated with parties with poor credit, is holding at 23.64% as of August 1, 2012, which is unchanged from last week. Six moths ago, however, the rate was lower at 23.41%.