Credit Card Rates for the week ending June 26, 2009

Credit card rates were mostly unchanged for the week ending June 26, 2009.  The annual percentage rate for all credit card offers was down just one basis point or 1/100 of a percent to end the week June 26, 2009 at 13.17%.  The credit card rates on new credit card offers was down on two out seven credit card categories, remaining unchanged for five of the categories.  The rate reductions on those credit cards that did step down were almost indiscernible. 

Low rate credit cards fell one basis point for the week to close out at 10.11%.  Travel credit cards also experienced a drop in the average credit card APR for the week, nudging off of last week’s average of 11.73% to end this week at 11.72%.  Interest rates on cash back credit cards, balance transfer, student credit cards, business credit cards and secured credit cards were unchanged for the week.

Credit card rates are holding steady even though most bank rates have been dropping throughout the year.  Treasury rates and mortgage rates have continued to gyrate fairly widely in the past several weeks with mortgage rates rising notably but moderately and Treasury rates moving up only slightly.  All the while, bank deposit rates including savings account and bank CDs have been dropping measurably.

Based on this drop in cost of funds for bank credit card issuers, that is the reduction in rates on bank deposits; one may expect to eventually see a reduction in credit card rates.  However, with limited access to securitization of credit card receivables and the increased delinquency rate in credit card portfolios, a significant reduction in credit card rates is not likely in the foreseeable future.

Tags: balance transfer credit cards, bank credit card, business credit cards, cash back credit cards, credit card apr, credit card offers, credit card rates, credit cards, low rate credit cards, secured credit cards, student credit cards

This entry was posted on Tuesday, June 30th, 2009 at 7:29 pm and is filed under Credit Card News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.