After breaking records in mid-December at 15.2%, the national average for interest rates on new credit card offers barely dropped last week to 15.1%, according to CreditCards.com. The site tracks weekly APRs like a hawk, looking at 100 of the most widely-used cards in the country.
U.S. Bank and Chase are mostly responsible bringing the average down a notch. U.S. Bank lowered the low interest APR on its Visa Platinum card by two points, and Chase dropped the APR for its Freedom card by three points to 14.99%.
Still, APRs have been on the rise steadily over the last six months, according to the site.
The one bit of good news is that the lowest interest rates have fallen slightly compared to half a year ago, from 10.73% to 10.62%.
Consumers with bad credit paid a whopping 25% average APR in December – a figure that’s held steady for months and falls in line with NerdWallet‘s prediction that banks will continue hiking fees in the new year.
On the flip side, banks will trip over themselves to attract better customers in the new year, elbowing out the riff-raff in the process.
“With everything so volatile (in the markets) right now, people are very unwilling to take on credit risks,” Nerdwallet VP Anisha Sekar recently told Your Money.
If your credit score isn’t looking hot these days, now might be the time to start thinking about switching to a credit union.
We doubt the big banks will be sad to see you go, and you might have a better shot at a union that offers interest-bearing accounts and lower-interest credit.