Q: Since the Credit CARD Act took place, what is the average interest rate that is being charged to the consumer?
Since the Credit CARD Act took place, what is the average interest rate that is being charged to the consumer?
The average credit card rate for consumer cards varies by type of card. Here is a sampling of average rates by card type as of June 25, 2010: Low introductory rates: 0.76%; Limited or no credit: 14.75%; Low regular rate: 11.45%; Air miles or travel: 13.82%; Rewards points: 14.17%; Cash back: 15.35%; Student: 13.96%; Business: 12.81%.
The credit card legislation that became effective on February 22, 2010 offered consumers protection against sudden interest rate hikes. For instance, significant changes in terms on your account, such as the APR, require 45 days' notice. And retroactive interest rate hikes on existing balances were also banned. To learn more about how the CARD Act affected consumers and interest rates, read The Dark Side of the CARD Act: CardRatings Research Confirms Consumers Worst Fears.
- Do any credit card companies penalize you if you have zero balance on your card and haven't used it for a few months?
- Does the Credit CARD Act apply to business credit cards?
- I have an excellent record for payments on all my cards, but I'm paying as high as 29 percent interest. How can I lower the rate?