Credit Cards
- 13.85% (all fixed)
- 14.48% (all variable)
The average annual percentage rate, or APR, for fixed-rate credit cards soared 49 basis points to 13.85 percent, according to Bankrate's latest survey of interest rates. A basis point is one-hundredth of 1 percentage point.
The average variable rate dropped 8 basis points to 14.48 percent from last week. Rates moved as one issuer in the survey deleted three of its fixed-rate offers and added three variable-rate cards.
One provision in the Credit Card Accountability, Responsibility and Disclosure Act of 2009 limits the nonpenalty fees that a credit card issuer can charge during the first year after an account opening to 25 percent of the initial credit limit. The Federal Reserve Board later expanded the rule to include fees charged before issuing a new card.
First Premier Bank and Premier Bankcard, whose credit cards charge upfront fees for riskier borrowers, sued the Consumer Financial Protection Bureau and the Federal Reserve Board over this rule in July. This week, a federal judge in South Dakota granted a preliminary injunction that will stop the enforcement of the rule until it makes a final decision. The expanded rule was set to take effect Oct. 1.