CreditCards.com Weekly Credit Card Rate Report: Average card APR jumps to record high of 15.27 percent

AUSTIN, Texas, Dec. 21, 2016 /PRNewswire/ -- The average APR on new credit card offers rose to an all-time high Wednesday after the Federal Reserve increased its benchmark interest rate, 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.

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

The national average APR jumped to 15.27 percent, which is the highest average APR that CreditCards.com has recorded since it began tracking rates in mid-2007. Previously, the highest national average recorded was 15.22 percent.

The Federal Reserve spurred this week's rate change by raising its benchmark interest rate, the federal funds rate, by 0.25 percent. When the federal funds rate increases, lenders typically change rates on variable rate cards by the same amount. 

Already, several major card issuers responded to the Fed change by increasing card APRs, including American Express, Wells Fargo and U.S. Bank. Among the 100 cards tracked by CreditCards.com, 26 increased rates by 0.25 percent.

The CreditCards.com credit card rate survey (permalink: http://www.creditcards.com/rate-report) is conducted weekly, using offer data from leading U.S. card issuers' websites. Introductory offer periods and regular interest rates will vary with applicants' credit quality and issuer risk-based pricing policies.

About CreditCards.com
CreditCards.com is the leading online credit card marketplace connecting consumers with multiple credit card issuers, including a majority of the 10 largest in the United States, based on credit card transaction volume. CreditCards.com, http://www.creditcards.com, enables consumers to search for, compare and apply for credit cards and offers credit card issuers an online channel to acquire qualified applicants.

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SOURCE CreditCards.com