With no change to the Prime Rate and the Federal Reserve remaining quiet this past month, credit card rates in May showed no significant change from the prior month.  Credit card rates, along with a number of other consumer lending rates, are now in limbo as the market digests the latest political and economic news that could potentially move interest rates in the near future.

Earlier in the year investors seemed convinced that the decade long trend of lower interest rates had been reversed after president Trump took office.  This position was at least partially validated when the Federal Reserve boosted the fed funds rate in March.  The change in confidence and market direction pushed interest rates higher and credit card holders were not spared from the increase in rates and ultimately, the cost associated with carrying credit card debt.

However, the latest political miscues combined with the lack of any meaningful legislative changes by the Trump administration has hindered the upward momentum that was driving interest rates.  Instead of continuing higher in 2017, interest rates have consolidated and are holding in a narrow or sideways pattern.

The average rate for new credit card offers ticked up just two basis point in the month of May.  One basis point is equal to 1/100th of a percent (0.01%). New credit cards available to consumers had an average rate of 14.16 percent in May, up from 14.14 percent in April.

Most credit card categories were unchanged from the previous month with the exception of low rate credit cards and travel rewards credit cards.  Low rate credit cards so an increase of two basis points in the average rate, climbing to 11.64 percent, while travel reward credit cards were bumped up one basis point to 13.28 percent.  The remaining five categories of credit cards in the Bestcreditcardrates.com survey were unchanged from the previous month.

Average national credit card rate: 14.16%

Average low rate credit card rate: 11.64%
Average cash back credit card rate: 13.29%
Average balance transfer credit card rate 12.93%
Average student credit card rate: 14.56%
Average rate on business credit cards: 13.05%
Average travel rewards credit card rate: 13.28%
Average secured credit card rate: 20.69%

The Bestcreditcardrates.com credit card rate survey is conducted monthly and measures the interest rates and fees offered on dozens of credit cards promoted by the leading credit card companies.

The credit card rate data presented in the survey is made available to help consumers research and compare the various credit card products, current interest rates, account terms, and services made available in today’s credit card market to help find the best credit card rates on a card that suit their needs.

Credit card rates and terms are subject to change, review the individual card issuer’s online application for details including current credit card rates, terms, and conditions before applying for a new card.

No user commented in " Credit Card Rates Duck, Dodge, and Do Nothing in May "

Follow-up comment rss or Leave a Trackback

Leave A Reply

 Username (*required)

 Email Address (*private)

 Website (*optional)