CreditCardsAct

The national average annual percentage rate on new credit card offers was unchanged this week at 12.17 percent, according to the CreditCards.com Weekly Credit Card Rate report, though banks continue to cautiously experiment in reaction to new credit card legislation.

The national average credit card APR is comprised of 95 of the most popular credit cards in the country, including cards from dozens of leading U.S. issuers and representing every card category listed below. (Introductory, or teaser, rates are not included in the calculation.) The averages in nine card categories were unchanged.

Rates for card categories tracked by CreditCards.com are listed below:

Credit Card Rate Averages

Avg. APR    Last week   6 months ago
National Average                             12.17%      12.17%      12.93%
Balance Transfer                             10.14%      10.14%      11.18%
Low Interest                                      10.62%      10.62%      12.38%
Business                                           11.07%      11.07%      16.74%
Cash Back                                        11.77%      11.77%      13.76%
Reward                                              12.16%      12.16%      12.22%
Instant Approval                               12.99%      12.99%      11.29%
Airline                                                13.48%      13.48%      13.25%
Bad Credit                                        14.29%      14.29%      13.18%
Student                                             14.45%      14.45%      15.94%
Updated: 9-3-09

Banks remain uncertain about how they should react to the Credit CARD Act, experts say, leading to a variety of changes for cardholders. After a period of rising interest rates, cardholders may now find other perks being scaled back.

In the near term, any additional APR changes are unlikely to stem from Federal Reserve monetary policy adjustments. Based on minutes from the Fed’s most recent meeting, policymakers appear content to leave the key lending rate at historically low levels for the time being.

The CreditCards.com credit card rate survey is conducted weekly, using offer data from the leading U.S. card issuers as found on their Web sites. Introductory offer periods and regular interest rates will vary with applicants’ credit quality and issuer risk-based pricing policies.

By Creditcard.com