CreditCards.com: Weekly Credit Card Rate Report

Business Wire, July 26, 2007

AUSTIN, Texas -- Credit card interest rates stayed in place this week, despite indications that consumer credit isn't on the firmest footing. The Federal Reserve and credit card issuers this week, in their own ways, highlighted weaknesses in consumer borrowing.

Student credit cards still charged the highest annual percentage rates (APRs).

Rates for card categories tracked by CreditCards.com are listed below:

                           <

Credit Card Rate Averages  <

                           <

Low Interest               <
11.41%
Balance Transfer           <
11.41%
Bad Credit                 <
12.81%
Cash Back                  <
13.13%
Reward                     <
13.66%
Business                   <
13.95%
Instant Approval           <
14.18%
Airline                    <
15.08%
Student                    <
17.88%
                           <

                           <

Source: CreditCards.com    <

Updated: 07-26-07          <

In its Beige Book economic survey issued Wednesday, the central bank noted that "Household credit quality deteriorated marginally" in June through early July. Meanwhile, recently publicized corporate earnings reports results showed credit card issuers had underwritten riskier loans in the second quarter, as evidenced by increases in loan loss provisions.

As credit card issuers set aside more funds for potential loan losses, they may need to eventually raise credit card APRs or fees to compensate. So although credit card interest rates should not increase as a result of any change in federal monetary policy, the indirect effect of deteriorating credit quality and increased loan loss provisions means cardholders could still end up paying more.

The CreditCards.com credit card rate survey is conducted each week using data from the leading credit card issuers in the United States.

Introductory offer periods and actual regular interest rates can vary depending on individual applicants' credit quality and issuer risk-based pricing policies.

About CreditCards.com

CreditCards.com is the leading online credit card marketplace, bringing consumers and credit card issuers together. At its free Web site, www.creditcards.com, consumers can compare hundreds of credit card offers from the nation's leading issuers and banks, and apply securely online. CreditCards.com is also a destination site for consumers wanting to learn more about credit cards; offering news, advice, features, statistics and tools - all designed to help consumers make smart choices about credit cards.

NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to CreditCards.com.