Consumer Payment Card News

Card APRS

While offered interest rates on bank credit cards hover at 12% to 14%, the APRs most consumers are paying are much higher. Excluding short-term promotional interest rates but including penalty rates charged to consumers with deteriorating credit scores, the average rate for standard bank credit cards topped 19% last month, compared to 16.5% four years ago. Platinum bank credit cards have also jumped dramatically from 13.90% in 2003 to 18.76% in March 2007. Most of the top issuers charge penalty interest rates above 32%, the highest rates ever charged among the nation’s top 10 issuers.

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|_4. Weighted March APRs |
|_. | Standard | Gold | Platinum |
|_. 2003 | 16.51% | 17.35% | 13.90% |
|_. 2004 | 16.78% | 17.10% | 14.68% |
|_. 2005 | 17.66% | 18.05% | 15.77% |
|_. 2006 | 18.53% | 19.02% | 17.55% |
|_. 2007 | 19.28% | 19.72% | 18.76% |
|_4. (Weighted to Market Share) |
|_4. Source: cardtrak.com |

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