- 13.71% (all fixed)
- 14.44% (all variable)
The average annual percentage rate, or APR, for fixed-rate credit cards dropped 14 basis points to 13.71 percent from 13.85 percent, where it had been for four straight weeks, according to Bankrate's latest survey of interest rates. A basis point is one-hundredth of 1 percentage point.
The decline was due to a change in how one issuer calculates rates. It eliminated individual tiers and instead now relies on an average spread. The variable rate remained at 14.44 percent for a second consecutive week.
A new survey this week from the Federal Reserve Bank of New York reveals that most Americans believe they owe substantially less on their credit cards than they actually do. The study found that the average household said it tallied up $4,700 in credit card debt, while lenders report an average balance of $7,134 in household credit card debt.