There wasn't any change in the interest rates on any new credit card offers this week in spite of Chase making several changes in APR. The annual percentage rates for the new card offers remained stable at 14.35 percent according to weekly reports. Chase card meanwhile has hiked its rates for its Southwest Airlines Visa Signature card and also for some of the Ink business cards it offers. However, not all the card rates went upwards. The lower limit of the APR range has been lowered further for the Chase Slate card. The overall impact of these changes on the national average was zero, which still leaves the rate at its highest mark since late August. According to Chase the pricing is based on a variety of factors related to its business. These prices are adjusted from time to time as appropriate for the company as well as for the card holders.
Statistics show that the company is doing well with JPMorgan Chase opening 2.7 million new chase credit card accounts in the third quarter while the current card holders did not have much trouble paying off the debts. According to Jamie Dimon who is the CEO, the situation with delinquencies as well as net charge-offs has improved and the trend is expected to continue going into the next quarter. The CEO in his announcement also said that the company has reduced the amount of reserve it keeps by 1.5 billion dollars for the charge-offs, owing to the fact that more and more consumers are expected to pay off their debts. According to the Fed, the improvement in the financial condition was contributing to the better loan performance of the consumers and it seems as if the credit problems have mostly peaked.
Consumer reports have shown that there is a drop in the proportion of consumers who have missed payment of a major bill over the past months. The reports also showed that consumers were finding it easier to make their monthly payments on the bills overall. As far as borrowers are concerned this is definitely a big improvement as on time payments is one of the keys to building a good credit score. One threat that doesn't look like going is that of lingering joblessness and banks have blamed the higher APRs for it. This would also lead to a greater number of defaults on loans with no real improvement in the job front.