U.S. bank credit card rates for all accounts edged up slightly in May by 6 basis points (bps) from the prior month to 12.04%. However, annual interest rates for all accounts accruing interest charges declined slightly in the second quarter by 5 bps to 13.49%.
According to the Federal Reserve U.S. bank credit card APRs for all accounts posted 11.98% for February and 13.53% for all accounts accruing interest charges.
Facing the real possibility of one FOMC rate hike in the second half, U.S. bank credit card rates will likely return to much higher rates.
U.S. card issuers will be able to maintain interest spreads as the Prime Rate rises but increasing delinquency and charge-offs may dampen the yield party. Furthermore, consumer pricing sensitivity will likely drive savvy issuers to market fixed rates or variable rates with caps.
U.S. Credit Card APRs for All Accounts
U.S. Credit Card APRs for All Accounts Accruing Interest Charges
Source: Federal Reserve; CardData; RAM Research
Interest rates on new credit card offers remained untouched this week, according to the CreditCards.com Weekly Credit Card Rate Report.
The average is comprised of 100 of the most popular credit cards in the country, including cards from dozens of leading U.S. issuers and representing every card category. Introductory (teaser) rates are not included in the calculation.
For the third week in a row, the national average annual percentage rate held tight at 15 percent.
None of the cards monitored by CreditCards.com offered new interest rates. Promotional APRs and 0 percent balance transfer offers were also left unchanged.
Average rates on new card offers are currently at their highest point in of 2015, but still within the narrow range that credit cards have stalled in since 2011, never straying far above or below the 15 percent mark. For example, the national average APR for all of 2014 was 15.02 percent. The average APR for 2015 is currently 14.92 percent.
For data, background and forecasts on U.S. Bank Credit Card Interest Rates: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).
Interest rates are annual percentage rates (APR) as specified by the Federal Reserve’s Regulation Z. Interest rates for new-car loans and personal loans at commercial banks are simple unweighted averages of each bank’s most common rate charged during the first calendar week of the middle month of each quarter. For credit card accounts, the rate for all accounts is the stated APR averaged across all credit card accounts at all reporting banks. The rate for accounts assessed interest is the annualized ratio of total finance charges at all reporting banks to the total average daily balances against which the finance charges were assessed (excludes accounts for which no finance charges were assessed).