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credit cards

Credit card rate averages March 12, 2009

Here's a look at the state of interest rates on five common consumer banking products and the latest rates from Bankrate.com's weekly national survey of large banks and thrifts conducted March 11, 2009.

  • Mortgages
  • CDs
  • Auto Loans
  • Home Equity
  • Credit Cards

Credit Cards

Rates: 13.56 percent (standard fixed); 10.80 percent (standard variable)

This week fixed interest rates rose while variable rates for new credit cardholders declined. For all fixed-rate cards, the average purchase rate increased 9 basis points while the variable rate slid down a point from last week to 10.75 percent. A basis point is one-hundredth of a percentage point.

Looking at standard cards, the average fixed rate jumped to 13.56 percent, up 9 basis points from the previous survey. Variable rates sunk 4 basis points to 10.80 percent.

This week former Oppenheimer analyst Meredith Whitney revised a prediction she made six months ago, that credit card issuers would slash at least $2 trillion in available credit lines within 18 months. In an opinion piece in The Wall Street Journal, she called her previous estimate "optimistic," considering that banks cut $500 billion in credit limits in the fourth quarter of 2008. Her new forecast: that issuers will sever more than $2 trillion in credit limits by year's end, and $2.7 trillion total by the close of 2010.

You can find your best credit card deal -- by type -- at Bankrate's interactive tool.

-- Leslie McFadden

 

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