Credit Cards
Rates: 13.56 percent (standard fixed); 10.78 percent (standard variable)Average interest rates on new credit cards remained relatively the same this week. Standard-fixed cards averaged 13.56 percent and standard-variable cards rose 2 basis points, to 10.78 percent.
For all fixed-rate cards, the average purchase interest rate stayed at 12.38 percent and the variable cards remain at 10.79 percent.
The big talk in the credit card world this week, of course, was the passage of the Credit CARD Act of 2009, which was signed into law last Friday by President Barack Obama.
Industry groups claim the new law will make it more difficult for the average consumer to obtain credit and say interest rates may climb. According to Bankrate's historical data on credit card interest rates, the average rate on the standard variable card has gone from 13.45 percent in February 2005 to a high of 14.79 percent in December 2006 and January 2007 to its current average of 10.78 percent.
Will card issuers run up interest rates for new cards before the law takes effect in 2010? Stay tuned.
Among the many consumer-friendly aspects of the bill are the new protections for consumers younger than 21. They may not apply for a credit card unless they have a co-signer, proof of their ability to pay the debt independent of a co-signer, or complete a certified financial literacy program.
The amount of income for under-21s hasn't been spelled out yet. As for the financial education program, the law states that the courses will be certified by the Office of Financial Education, an office of the Treasury Department, and can be offered by such organizations as nonprofits or for-profits, and state and local governments.
The law also requires transparency of the relationships between credit card companies and universities -- the creditor has to submit an annual report that lists the amount of payments from the creditor to the institution, the number of credit card accounts under that agreement and other information.
You can find your best credit card deal -- by type -- at Bankrate's interactive tool.
-- Ellen Cannon