The interest rates on credit cards have continued to remain steady
As per recent reports by many leading financial agencies in the country, the interest rates have continued to remain steady although the banks haven’t remained idle.
The APR or the annual percentage rates on the fresh credit card offers have continued to remain at 14.83% this week despite the changes in card offer by Discover as well as the sporting goods retailer Cabela’s.
Cabela’s and Discover had changed their top end card’s APR range. However, while doing the calculations only the low end APR ranges are taken into account and this was one reason why the APR remained unaffected by these changes.
The range of the top end of Cabela’s cards went down further from 18.25% to 18.20% and the low end was holding steady at 9.99%. This change was due to the movement in Libor stated Kevin Werts, Cabela’s CFO. Libor is the British equivalent of the Federal Funds Rate by US. Most of the variable rate credit cards in the US are tied to the US prime rate. The movement of this rate is based on the federal funds rate from the Federal Reserve. Likewise, Cabela’s card is tied to Libor and when there is movement in Libor, the APRs of all the credit cards which are tied to Libor will also move in that particular direction and by the same amount.
The average APR on the new airline rewards credit cards is 14.24%.The low ends of the APR ranges were used to do the calculations on the national average APR on the airlines rewards cards.
The lowest APR was at 10.99% on both Escape cards as well as Discover Miles while the top end of the APR range on both the cards was at 15.99%. The highest rate was 24.99% and this was the top end of the APR range on US Airways Premier World MasterCard. But, the low end of that range was at 15.24% and it was in line with other airline card APRs as well.
However, there is much more that a good rewards card can offer apart from the APR. There are some of the airline rewards cards that don’t charge any annual fee. Most of the airline rewards cards carried an annual fee which was at $150, but there were a few cards that dropped their annual fee for the first year or the year when the account was opened.
