October 22, 2009
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News: Rundown on Latest CC Rate Figures.
Every week we get a report from credit cards dot com. A chart of credit card rate figures for the week finished is delivered for us to figure out. Most people don't get into it to any depth but, future credit card trends are to be found there. The latest issue (ending 10/15) reveals some interesting aspects, which are likely to play out over the coming weeks or even months concerning credit card rates.
Perhaps of particular note is that the overall national average of credit card rates of all categories has, for the first time in a long while, held even. Holding at 12.6%, the trend here could be a reflection that the large credit card carriers have finally backed off from their steady onslaught.
Fraught with concerns of impending federal intervention, the credit card industry has decided that they've reached the limit of what the public (and therefore, Congress) would tolerate and now must back off to escape retribution. They've already made their mark and have hedged the balance so heavily in their favor that banks like Cap1 can now show an astounding 14% profit in spite of the worsening job market.
Technically, the composite average has actually fallen slightly (from 12.64% to 12.60%). This reverses the hic-up last week when, after falling several weeks in a row the rate took a jump. Back on track, perhaps, interest rates are on the down again. This is largely attributed to the recent commitment of several large credit card lenders to "stop it". Bank of America, Discover and Capital One have all pledged to stop raising interest rates until the CCARDA mandates take effect. They hope that date will remain in mid-February instead of being moved up to December 1. Because of their misbehavior, Congress has been prompted to take action.
Of the 9 categories listed, 5 have remained the same, three have fallen and 1 has gone up. "Rewards-type" rates have gone from 12.61% up to 12.76%. Credit card rates in the "Business", "Low interest" and "Airline" categories have all fallen.