Credit Card Deals - Average Interest Rates Decrease

There's good news for cardholders, the average interest rate on credit cards have dropped to about 13% for the last six months. Speaking of those cards that come with rewards, the interest rate on these plastics is approximately 15%. And it must be said that it's the lowest index since 2006.

Consecutive fed rate cuts have taken their toll, and average rates on credit cards have dropped significantly. It's all so clear that banks benefit from interest-rate decrease but what about cardholders? Let's take a closer look at the rates in credit card industry!

It's worth mentioning that in general credit card rates can be described as a stagnant pond rather than boiling milk. However, in the light of the interest rate changes over the past months, we may say that sometimes still waters run deep.

The interest rates set by the Fed Reserve have a great effect on the banks. Lower fed rates make it easier to borrow money for banks. A prime rate is set in tandem with the fed rate. That's why cardholders, who carry the cards with a variable rate, may see immediate changes in their credit card rates.

However, it takes time to see any dramatic changes in the credit card industry after a series of federal interest cuts. Since September, the Federal Reserve cut interest rate to 3%. It often takes months for a fed rate to filter down to those rates consumers have on their credit cards.

Still, lenders differentiate customers into several groups so that every consumer group has a specific credit card offer. This way, for those people whose credit rating is high enough, there is an average interest rate of 9.9%. As for the cards with rewards for the same consumer group, rates averaged 12.65%.

Speaking of student credit cards, the average rate on these cards is approximately 15%. Though it may seem somewhat high, but it's a good rate in view of the fact that credit deals for college students come with higher interest rates in comparison with good credit card offers.

If you carry a business credit card, the information about the average interest rate for these cards will be valuable for you. For non-rewards credit cards, this rate is 11.29%, and if you would like to take advantage of rewards, the average rate is 12.6%.

No matter how great these changes are, most cardholders are not satisfied with the rates on their cards. Credit experts advise revising credit card rates on a regular basis, as many ignorant consumers do not bother to check credit rates on their plastics.

Once you carry a balance, consider the option of applying for a low-rate credit card. Rewards credit cards in this situation won't be the best option, as you should pay your balance in full every month. But while cardholders are expecting credit card rates cuts, some lenders are not so willing to lower rates on the cards of existent customers until they ask for it. If you consider the rate on your card high, call your lender and negotiate this point.

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