Key Findings:
- Regular APRs rose relative to last year for most general-consumer credit cards – Relative increases between 4.2% and 5.7% were observed among general-consumer credit cards for excellent, good, and fair credit
- For business, student and secured credit cards, regular APRs stayed virtually unchanged relative to last year – Compared to last quarter, however, secured card interest rates declined almost 9%.
- 0% introductory terms are over 27% longer than in Q1 2011 – Zero percent rates for new purchases are nearly 28% longer than last year, and 0% balance transfer terms are around 36% longer. Intoductory terms now range from 6 to 18 months, depending on the card and type of transaction. It appears that issuers are willing to sacrifice interest revenue in the early stages of the customer life cycle in the hopes of attracting more new customers and recouping this revenue later through higher regular APRs.
- Foreign exchange fees continue their decline – More and more consumers appear to be catching on to these costly fees, and their interest in avoiding them is leading issuers to eliminate or decrease charges for foreign transactions.
- Balance transfer fees rose - With 0% introductory periods getting longer and longer, issuers are once again increasing transfer fees to compensate for lost finance charges and are therefore reversing the trend of recent declines.
- Initial rewards bonuses increased significantly – The average cash back initial bonus is over 90% higher relative to last year, while not much different than last quarter. Points and miles bonuses are up nearly 20% compared to last year and 9% relative to last quarter.
- Cash back rewards are 60% more lucrative – While the card with the best cash back rate across all purchases offered only 1.25% in Q1 2011, base rates as high as 2% are now available.
Please find a breakdown of pertinent credit card data for Q1 2012 below.
Interest Rate Landscape
The table below summarizes average interest rates based on consumers’ credit standing.
| Q1 2012 | Q4 2011 | Q1 2011 | Change from Last Quarter | Change from Last Year | |
| Excellent Credit | 12.98% | 12.93% | 12.46% | 0.39% | 4.17% |
| Good Credit | 17.12% | 17.03% | 16.20% | 0.53% | 5.68% |
| Fair Credit | 20.30% | 19.37% | 19.31% | 4.80% | 5.13% |
| Secured Credit Cards |
17.71% | 19.40% | 17.73% | -8.71% | -0.11% |
| Student Credit Cards |
15.81% | 15.91% | 15.83% | -0.63% | -0.13% |
| Business Credit Cards |
15.25% | 15.28% | 15.16% | -0.20% | 0.59% |
Balance Transfer Landscape
The table below summarizes key information for consumers interested in getting a credit card in order to transfer an existing credit card balance.
| Q1 2012 | Q4 2011 | Q1 2011 | Change from Last Quarter | Change from Last Year | |
| Average Length of 0% APR Intro Period (in months) | 10.07 | 9.67 | 7.39 | 4.14% | 36.27% |
| Range of 0% APR Intro Periods (in months) |
6-18 | 6-21 | 6-24 | N/A | N/A |
| Average Regular APR for Cards that have 0% Intro APR on Balance Transfers |
16.59% | 16.68% | 16.09% | -0.54% | 3.11% |
| Range of Regular APRs for Cards that have 0% Intro APR on Balance Transfers | 8.15% – 25.99% | 7.24% – 25.90% | 7.24% – 23.99% | N/A | N/A |
| Average Balance Transfer Fee for Cards with 0% Intro APR on Balance Transfers |
3.13% | 2.89% | 3.01% | 8.30% | 3.99% |
Longest 0% APR Intro Period for Balance Transfers:
Citi Platinum Select MasterCard
Citi Diamond Preferred Card
Discover More Card – 18 Month Promotional Balance Transfer
New Purchase Landscape
The table below summarizes key information for consumers interested in getting a credit card in order to make certain purchases they will not be able to pay back immediately (i.e. revolve a balance).
| Q1 2012 | Q4 2011 | Q1 2011 | Change from Last Quarter | Change from Last Year | |
| Average Length of 0% Intro Period (in months) | 9.69 | 9.26 | 7.29 | 4.64% | 27.67% |
| Range of 0% APR Intro Periods (in months) |
6-18 | 6-21 | 6-21 | N/A | N/A |
| Average Regular APR for Cards that have 0% Intro APR on New Purchases |
16.33% | 16.43% | 16.14% | -0.61% | 1.18% |
| Range of Regular APRs for Cards that have 0% Intro APR on Purchases | 7.50% -25.99% | 7.50% -24.90% | 7.50% -24.90% | N/A | N/A |
Longest 0% APR Intro Period for New Purchases:
Rewards Landscape
The table below summarizes key information for consumers interested in rewards credit cards (i.e. consumers who use their credit card often and pay their balance in full every month).
Cash Back
| Q1 2012 | Q4 2011 | Q1 2011 | Change from Last Quarter | Change from Last Year | |
| Average Base Earn Rate | 0.99 | 0.99 | 0.95 | 0.00% | 4.21% |
| Range of Base Earn Rate |
0.25% – 2% | 0.25% – 2% | 0.25% – 1.25% | N/A | N/A |
| Average Initial Bonus | $57.42 | $57.94 | $28.82 | -0.90% | 92.56% |
| Range of Initial Bonus | $10 – $250 | $10 – $250 | $10 – $100 | N/A | N/A |
High Initial Cash Back Bonus:
Miles or Points
| Q1 2012 | Q4 2011 | Q1 2011 | Change from Last Quarter | Change from Last Year | |
| Average Base Earn Rate (in miles or points) | 1.07 | 1.06 | 1.05 | 0.94% | 1.90% |
| Range of Base Earn Rate | 0.5 – 5 miles/points | 0.5 – 5 miles/points | 0.5 – 5 miles/points | N/A | N/A |
| Average Initial Bonus (in miles or points) | 10,051 | 9,221 | 8,425 | 9.00% | 19.29% |
| Range of Initial Bonus | 25 – 60,000 miles/points | 500 – 60,000 miles/points | 500 – 40,000 miles/Points | N/A | N/A |
High Initial Bonus for Points/Miles:
Hilton HHonors Surpass Credit Card
Fees
| Q1 2012 | Q4 2011 | Q1 2011 | Change from Last Quarter | Change from Last Year | |
| Average Maximum Late Fee | $33.11 | $32.70 | $32.74 | 1.25% | 1.13% |
| Average Foreign Transaction Fee | 2.38% | 2.42% | 2.52% | -1.65% | -5.56% |
| Foreign Transaction Fee Range | 0% – 3% | 0% – 3% | 0% – 3% | N/A | N/A |
| Average Balance Transfer Fee for Cards with Intro Balance Transfer APR | 3.05% | 2.85% | 2.96% | 7.02% | 3.04% |
Penalty APRs
| Q1 2012 | Q4 2011 | Q1 2011 | Change from Last Quarter | Change from Last Year | |
| Average | 28.53% | 28.46% | 27.83% | 0% | 3% |
| Range | 17.99% – 30.99% | 17.99% – 31.99% | 17.99% – 30.99% | N/A | N/A |
Cash Advances
| Q1 2012 | Q4 2011 | Q1 2011 | Change from Last Quarter | Change from Last Year | |
| Average APR |
22.29% | 22.26% | 22.06% | 0% | 3% |
| APR Range |
6.25% – 49.90% | 6.25% – 49.90% | 6.25% – 30.45% | N/A | N/A |
| Average Cash Advance Fee % |
3.72% | 3.75% | 3.59% | -0.80% | 3.62% |
| Average Cash Advance Fee $ Amount |
$8.89 | $8.86 | $8.83 | 0.34% | 0.68% |
Credit Card Debt
| Q1 2012 | Q4 2011 | Q1 2011 | |
| Accumulation |
-$35.83 billion | $45.48 billion | -$32.87 billiion |
| Percent Change from Previous Year |
+12% | +30% | -30% |
Delinquency and Charge-Off Data (Not Seasonally Adjusted)
| Q1 2012 | Q4 2011 | Q1 2011 | Change from Last Quarter | Change from Last Year | |
| Delinquency Rate |
3.11% | 3.32% | 3.89% | -6.3% | -20% |
| Charge-Off | 4.37% | 4.53% | 6.96% | -3.5% | -37.2% |
Unemployment
| Q1 2012 | Q4 2011 | Q1 2011 | Change from Last Quarter | Change from Last Year | |
| Unemployment Rate |
8.2% | 8.5% | 9.1% | -3.5% | -9.9% |
Notable Q1 2012 Credit Card Offer
- Slate from Chase: No balance transfer fee with 0% APR on both balance transfers and purchases for 15 months.
- PenFed Platinum Rewards: 5 points per $1 spent on gas purchased anywhere as well as an initial bonus worth $250.
Please find previous reports here:
This report was compiled using data from the 1000+ credit card offers that CardHub.com monitors on a daily basis.
For questions or more information regarding this report, please contact our media department.
