For three weeks in a row now, Capital One has boosted credit card interest on its products giving the national average APR or annual percentage rate of 14.33 % on its newly offered cards. Among Capital One`s most recent adjustments is its APR increase on card rewards. A couple of other banks have also adjusted their card offers but the changes made had a very minimal to no effect on the database rates.
In the category of card rewards, there was an increase in rate after Capital One made a two percent increase APR on its Venture One Rewards cards. The bank has not recently provided a statement or a comment but Capital One has previously stated that the card adjustment they had was only a response to the competition and condition of the market.
Though the marketplace for cards has remained in a difficult time and with the banks continuously facing weak economy and tough regulations, Capital One still is seeing improvements in the financial results. After the company`s most recent Securities and Exchange Commission filing this May 2010, it has reported that more of its credit cardholders had been making payments on time and delinquency rate decreased.
Not only has Capital One made some changes on their rates; Navy Federal Credit Union and Chase did too on their card offers. While Chase chose not to give any comment, Navy Federal Credit Union cards are done under strict scrutiny at all times. According to the credit union`s manager, Justin Brooks states that their aim is to offer competitive prices but still retain the great service the company is known for. In order to do this, they have evaluated their credit card pricing and had to result to a slight rate increase. Despite this increase, however, Brooks feel that Navy Federal still has the best rates and rewards in the industry.
The credit card industry is charging the borrowers higher than the previous months. To set an example, a borrower with a $5000 loan from his credit card previously would be paying a monthly rate of $150 but with the recent adjustments on interest rate, a borrower would have to pay $6,414 until the debt is completely paid off. That would be like $178 higher compared with the rate that one is supposed to pay before the adjustments were implemented.