Astounding Credit Card Statistics, Vol. 5

Welcome to the fifth installment of our continuing series, Astounding Credit Card Statistics. In this volume, you’ll learn a few facts about credit card interest rates and annual percentage rates (APRs), so you understand what your customers – and perhaps even you – are experiencing every day. Armed with a unique knowledge of credit cards, their interest rates, and more, you’ll be that much more prepared in your fight for profitability. Vision Payment Solutions encourages the responsible use of credit cards; we are your one-stop shop for all credit card-processing needs: hardware, software, and customer support. Get in touch with us today to start processing your customers’ credit cards!

Interest Rates & APRs

  • 36 percent of respondents said they didn’t know the interest rate on the card they use most often. (Source: FINRA Investor Education Foundation, “Financial Capability in the United States,” December 2009)
  • The national average default rate as January 2010 stood at 27.88 percent and the mean default rate is 28.99 percent. (Source: CreditCards.com survey, January 2010)
  • Slightly more than half of Americans — 51 percent — said that in the past 12 months, they carried over a balance and was charged interest on a credit card. (Source: “Financial Capability in the United States,” FINRA Investor Education Foundation, December 2009) 
  • 93 percent of cards allowed the issuer to raise any interest rate at any time by changing the account agreement. (Source: Pew Safe Credit Cards Project, March 2009)
  • Only eight percent of cards with penalty rate conditions offered to restore the original rate terms when payments are made on-time, usually after 12 months. (Source: Pew Safe Credit Cards Project, March 2009)
  • 72 percent of cards included offers of low promotional rates which  issuers could revoke after a single late payment. (Source: Pew Safe Credit Cards Project, March 2009)
  • Among 39 credit cards Consumer Action looked at from 22 financial institutions, the average interest rate for purchases was 12.83 percent. That’s a drop of more half a point from the 2008 survey results. Interest rates on purchases ranged from 4.25 percent to 22.99 percent, with the fixed rate credit cards averaging an interest rate of 10.03 percent and the variable rate credit cards averaging 13.20 percent. (Source: Consumer Action credit card survey, July 2009)
  • Average APR on new credit card offer: 14.10 percent (Source: CreditCards.com Weekly Rate Report, May 2010.)
  • Average APR on credit card with a balance on it: 14.67 percent, as of February, 2010 (Source: Federal Reserve’s G.19 report on consumer credit, May 2010)