Credit Card Interest Rates Hold Steady
While the race for lower and lower introductory interest rates from American credit card companies races on, rates past the promotional period are stagnant, up only modestly for the first time since October 2012.
The national average for credit card interest rates rests at 14.96%, up from months of consistent declines or no change at all since 2012. Those in the low interest category swept with interest rates just barely in the double digits, for an average of 10.29%, or 11 basis points lower than the average one-half year prior.
Balance transfer cards also proved to be a top contender. The balance transfer card offered an average rate of 12.59% in the most recent survey, higher than low interest cards, but lower than other categories known for hefty promotions like business cards, cash back rewards credit cards, and airline cards. Among the worst in the space are instant approval cards, which market less based on long term interest rates and more based on the immediate availability of credit.
Luckily for new applicants, interest rates on the long term are diluted by upfront special offers, zero percent interest introductory specials, and bonus points intended to grab new credit card customers. The introductory competition is only heating up, helped by the rising availability of credit, more competitive credit market, and a consumer more eager to spend.
