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Credit Card Applications » News » Other » Interest Rate Current

Interest Rate Current

October 27, 2008
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Credit Card Interest Rates Forecasts

A couple of weeks ago, Federal Reserve made an unscheduled interest rate cut, forecasting further reduction if needed. According to Fed chief Ben Bernanke, the current situation is far from being favorable for catching up with outstanding bills and if the rates remain, banks should expect many more losses soon. With such Fed's dead set, major US card companies are leaving interest rates as they are. Some card features changes are constantly introduced and have already affected intro periods and perks on some deals. But as the annual percentage rates are the determinants of your monthly payments and cost of the deal on the whole, their relative stability or stagnation, whatever, is encouraging.

According to the data provided by the authoritative sources, rates have barely stirred in the last two weeks. Banks keep the rates steady regardless of the still worsening situation in the country's economy.

Tracked were nine credit card categories which interest rates can be changed any time for any reason under the cardholder's agreement terms and conditions. These are low interest cards, business and student cards, balance transfers, instant approval offers, bad credit cards, airline and other rewards cards. Of the nine, only one category - instant approval - had a slight rate increase, resulting in 11.65% up from 11.62% a week ago. Taking the figures of 6 months ago, which were 9.94%, instant approval got the greatest hike, together with business category which rose from 9.93% to 11.52%.

Surprisingly, bad credit lines became cheaper as compared to 6 months ago and the average interest rate on them is currently 10.82%. Cheaper are student cards which fell from 14.99% half a year ago to 14.34% and airline rewards offers which went from 12.47% down to 12.28%. Slightly higher rates are registered on balance transfers (9.74% 6 months back and 9.97% today), on low rate cards (increase from 10.61% up to 10.70%) and cash back (from 11.20% up to 12.13%),

Good news is that for two weeks in a row, interest rates stayed unchanged, whereas banks continue to incur losses and stand poorer revenues. American Express and Capital One are reporting weakness and drop in sales in the third quarter due to higher delinquency rates. Big retailers such as Target are experiencing huge write-offs of uncollected card charges and selling their customers' debts for pennies on the dollar to debt collection companies.

The rate figures presented above are only general, meaning that your personal regular and introductory interest rates will vary depending on your credit rating, length of payment history, income and other factors. Some cards online offer different rating for good and bad credit customers and you'll be disclosed which one you qualify after the issuer assesses your application. The same concerns the limit on the card you request. Typically, you'll know it only after you apply and provide the issuing company with personal and credit information. Your income plays an important factor for the lender's decision on the credit line.

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  • Larry
    With the Virgin / Barclaycard signature offer, there seems to be some consumer deception or maybe even outright fraud goin on.   I decided to jump on this offer..  read all the info on it..  was approved for their platinum card, paid the fee, then was only awarded 10,000 points instead of the advertised 20,000.   When i inquired about the less than advertised bonus points, Barclaycard claims only Signiture Visa cardmembers get the 20,000..  as a platinum cardholder, you don't qualify for that level of bonus, so you get 10k instead.   Well, in their current ongoing promotions, it states plain as day that....    Applicants approved for the Visa Signature or Platinum Card with $49 annual fee will receive 20,000 Bonus Points awarded to your Virgin America Rewards Account at the close of the first billing statement in which you make your first purchase or balance transfer (that is not returned or rescinded) and have paid the Annual Fee on the account (and such fee is not rescinded). They don't mention anything about a separate program for platinum cardholders..  However, trying to get someone to resolve this issue with either Virgin or Barclaycard seems to be rather impossible.. Seems to me they're simply drawing people in with the fraudulent offer, then simply saying, oh, we're sorry you don't qualify..  but thanks for signing up for our garbage credit card with insane fees..   
  • CreditLandCom
    Thank you for sharing your experience with us. We have reviewed this offer and you are correct, nowhere it is mentioned that 20,000 Bonus can become a 10,000 Bonus all of a sudden... We will mention this in our review of this card so others can make an informed decision. Another way to get Virgin miles is to get an American Express charge card: The Business Gold Rewards Card® now offers 50,000 Miles, though you do have to spend $5,000 in the first three months of card membership to get it. It also has $0 introductory annual fee for the first year, then $175. http://www.credit-land.com/details/the-business-gold-rewards-card-from-american-express-open.php Premier Rewards Gold Card now offers 25,000 Miles, though you do have to spend $2,000 during your first three months of Card membership. It also has annual fee of $0 for the first year, then $175. http://www.credit-land.com/details/american-express-premier-rewards-gold-card.php While we do not know If any of these offers make sense to you, we are at least sure that you will get advertised bonus in full if you decide to get them... Conversion rates for Virgin America are: 100 Elevate Points = 200 Membership Rewards® Points All the best.
  • Deborah Ellsworth
     would very much like to start a new credit history  by making payments on time I would tohave a credit card that is NOT PREPAYID! I don't need a card with a high limit just something to start a new credit history. Thank You Deborah Ellsworth
  • Deborah Ellsworth
    I would very much like to start a new credit line to get back on track. I DO NOT WANT A PREPAID CARD!! This new credit card if I am approved does not have to hace a high limit just something for me to start over again and prove myself ThankYou. D Ellsworth
  • Miss Edna
    there is a huge problem with the RFIP chip: it is easily compromised. There are already 'readers' in the form of what looks like a cellphone in a case, that scans all the info in the chip by merely walking near a person -- this 'reader' penetrates leather, cloth, spandex, etc. The only thing it will NOT penetrate is METAL. Perhaps one has seen commercials touting metal credit card cases. Here is my hint for a free fix: cut a piece of aluminum foil or use the foil that is used to keep foods fresh, like coffee. Cut it so that when folded once, it forms a sleeve for your credit card. place the credit card in the sleeve, then place the sleeve in your wallet.
  • Robin Parks
    I am looking to apply for the AARP Visa signature card from Chase that offers $100 after spend $500 in first 3 months, no annual fee and 0% interest first year; I don't want to mail in offer because of having to write in Social security #. Can you direct me to the proper on-line site?
  • CreditLandCom
    The Chase bank cards are not currently available at Credit-Land.com, but you can consider applying for the Citi® Dividend Platinum Select® Visa® Card - $100 Cash Back. The cards has similar terms and cash back program.
  • Becky
    This is Becky Now what do I do just waqit for acard to come to me?
  • CreditLandCom
    Once you have applied, you should receive a letter within 10 business days letting you know if you were approved and when your card will arrive. If you did not receive any letter or notification from the issuer, you should contact them directly. Also, you should contact the issuer if you’ve been waiting for your credit card longer than 30 days. Since we are not a bank and don’t issue credit cards, we cannot give you any information about your application or credit card.
  • SavingStar
    Thank you for posting about SavingStar. Just to clarify one sentence in your article, we have over 5 million members (not 500). Thanks, Josh
  • CreditLandCom
    Sorry for the misprint. We’ve corrected the sentence. Thank you for noticing that.
  • Eric
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