The annual interest rates of three of the more popular categories if credit cards have dripped a bit last week after two weeks of increasing rates. Overall, the interest rates for most credit cards remained pretty steady.
The two cards with dipping interest rates include the balance transfer cards which consumers are offered to aid in consolidating debt from other credit cards. The highlight of the balance transfer card is often a low introductory rate. Consumers take advantage of the low interest rates during the introductory period and pay off the balances before the regular interest rate returns to the account. This gives consumers the advantage of paying off credit card debt without incurring additional finances charges. The drawback is carrying a balance after the introductory period has ended. That rate was down to 13.13% on average, which is a marginal drop from the week prior’s average of 13.15%.
The other category of credit cards with dropping interest rates included the cash back reward cards which decreased from 13.86% to 13.83%. The cash back rewards cards offer consumers cash back in their pockets for each eligible charge put on the credit card. Consumers who utilize the credit card’s cash back rewards system often receive between 1%-5% back in cash based on eligible purchases made with the credit card.
Traditional low interest cards, which are reserved for consumers with very strong credit histories, still offer APR’s lower than the national average at 11.6%, leaving it unchanged from the week prior. Consumers are still struggling to contend with the changes made in the credit card industry, including the higher interest rates and reduced credit limits on their accounts.
The decline in interest rates is slight and does not offer much relief from the burgeoning debt by credit card users. It is becoming increasingly common for consumers to find themselves living off of credit cards as families struggle to survive through job layoffs and the economic difficulties the nation is still facing.