Key Findings:
- Cash back initial bonuses got better during the third quarter of 2012 (becoming 6.49% more valuable than Q2), while points/miles-based bonuses got worse (12.21% less valuable). This is an exact reversal of what happened the previous quarter. – It appears that credit card companies sweetened the pot with points and miles during the summer months in order to cater to the desires of folks looking to save on a vacation. Now, with the busy holiday shopping season fast approaching, they are shifting the value to the more versatile cash back rewards.
- Secured credit card interest rates are down 5.61% from last quarter and 7.16% compared to Q3 2011 – This again reverses a trend seen during Q2 2012 and illustrates that credit card companies have come to realize that secured cards pose little risk to them and that by improving product terms, they can garner a foothold with a sizeable and potentially lucrative consumer segment.
- After steadily upping the ante, it seems that credit card companies have made 0% credit card offers about as attractive as they’re going to get in the short-term – While the average length of a 0% intro period is still a very attractive 10.06 months (12.15% longer than last year), that represents a 2.04% decrease from Q1 2012 and perhaps signals that now is the time for indebted consumers to make their move.
- The average balance transfer fee for 0% balance transfer credit cards is now 2.88%, or 3.03% less than last quarter – In the past, issuers have raised balance transfer fees in accordance with extensions of 0% balance transfer introductory periods. As the average balance transfer fee for cards with an intro rate fell 2.62% during Q2 and 3.03% during Q3, this is an indication that issuers realized they went overboard with the fee increases, and it’s obviously good news for consumers, as it makes balance transfer deals even more attractive
- Cash back initial rewards bonuses are 6.49% more lucrative than last quarter and 20.44% more lucrative than this time last year– Last quarter, credit card companies increased the value of points/miles rewards bonuses while limiting the cash-based perks they doled out. We’re now seeing the opposite take place. One explanation for this change is the fact that points and miles are popular during the busy summer travel season, when people are looking to score free vacations, but the versatility of cash really comes in handy as we near the holiday shopping season.
- Interest rates for people with good and excellent credit are 0.76% and 1.41% higher respectively, than this time last year – People with above average credit needn’t worry, as these interest rate increases merely reflect a bit of issuer reshuffling to accommodate the attractive 0% rates we’ve seen of late.
- The top 4 complaints represent more than a third (41.2%) of all the consumer complaints made in Q3 2012 – It’s no surprise that “Billing Disputes” tops the list, but it’s interesting that issues with one’s interest rate were more common than matters relating to identity theft and fraud. This perhaps speaks to the problems that people are having with out-of-control credit card debt.
- Credit reporting complaints increased by 35.7% during Q3, complaints related to late fees increased 20.5%, and those concerning account closings and the payoff process rose 9.3% and 9.0%, respectively – It is interesting that credit reporting complaints increased right around the time that the Consumer Financial Protection Bureau announced that it is turning its attention to credit bureaus and, more specifically, the high incidence of mistakes in consumer credit files. The emergence of other complaint categories could indicate that consumers are simply becoming more aware of their ability to submit grievances to the CFPB or that credit card companies are returning to some of the practices that got them into trouble prior to the Great Recession.
Please find a breakdown of pertinent credit card data for Q3 2012 below.
Interest Rate Landscape
The table below summarizes average interest rates based on consumers’ credit standing.
| Q3 2012 | Q2 2012 | Q3 2011 | Change from Last Quarter | Change from Last Year | |
| Excellent Credit | 12.99% | 12.95% | 12.81% | 0.31% | 1.41% |
| Good Credit | 17.17% | 17.12% | 17.04% | 0.29% | 0.76% |
| Fair Credit | 19.18% | 20.15% | 19.34% | -4.81% | -0.83% |
| Secured Credit Cards | 18.01% | 19.08% | 19.40% | -5.61% | -7.16% |
| Student Credit Cards | 16.40% | 16.30% | 15.97% | 0.61% | 2.69% |
| Business Credit Cards | 15.19% | 15.11% | 15.22% | 0.53% | -0.20% |
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.
| Q3 2012 | Q2 2012 | Q3 2011 | Change from Last Quarter | Change from Last Year | |
| Average Length of 0% APR Intro Period (in months) | 10.06 | 10.27 | 8.97 | -2.04% | 12.15% |
| Range of 0% APR Intro Periods (in months) | 6-18 | 6-18 | 6-21 | N/A | N/A |
| Average Regular APR for Cards that have 0% Intro APR on Balance Transfers | 16.59% | 16.55% | 16.66% | 0.24% | -0.42% |
| Range of Regular APRs for Cards that have 0% Intro APR on Balance Transfers | 8.15% – 25.99% | 8.15% – 25.99% | 7.24% – 24.99% | N/A | N/A |
| Average Balance Transfer Fee for Cards with 0% Intro APR on Balance Transfers | 3.07% | 3.15% | 2.82% | -2.54% | 8.87% |
Cards with the Longest 0% APR Intro Period for Balance Transfers:
Citi Diamond Preferred Card
Discover More Card – 18 Month Promotional Balance Transfer
Citi Simplicity Card
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).
| Q3 2012 | Q2 2012 | Q3 2011 | Change from Last Quarter | Change from Last Year | |
| Average Length of 0% Intro Period (in months) | 10.01 | 9.90 | 8.99 | 1.11% | 11.35% |
| Range of 0% APR Intro Periods (in months) | 6-18 | 6-18 | 5-21 | N/A | N/A |
| Average Regular APR for Cards that have 0% Intro APR on New Purchases | 16.49% | 16.30% | 16.50% | 1.17% | -0.66% |
| Range of Regular APRs for Cards that have 0% Intro APR on Purchases | 7.50% -25.99% | 7.50% -25.99% | 7.50% -24.90% | N/A | N/A |
Cards with the Longest 0% APR Intro Period for New Purchases:
Citi Diamond Preferred Card
Citi Simplicity Card
Citi Platinum Select Visa Credit Card
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
| Q3 2012 | Q2 2012 | Q3 2011 | Change from Last Quarter | Change from Last Year | |
| Average Base Earn Rate | 0.98 | 0.98 | 1 | 0.00% | -2.00% |
| Range of Base Earn Rate | 0.25% – 2% | 0.25% – 2% | 0.25% – 2% | N/A | N/A |
| Average Initial Bonus | $59.86 | $56.21 | $49.70 | 6.49% | 20.44% |
| Range of Initial Bonus | $10 – $250 | $10 – $250 | $10 – $250 | N/A | N/A |
Card with the High Initial Cash Back Bonus:
Ink Cash Business Card
Blue Cash Preferred from American Express
Citi Dividend Platinum Select Visa Card
Miles or Points
| Q3 2012 | Q2 2012 | Q3 2011 | Change from Last Quarter | Change from Last Year | |
| Average Base Earn Rate (in miles or points) | 1.08 | 1.08 | 1.06 | 0.00% | 1.89% |
| 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) | 9,470 | 10,787 | 9,620 | -12.21% | -1.56% |
| Range of Initial Bonus | 500 – 70,000 miles/points | 500 – 100,000 miles/points | 500 – 50,000 miles/Points | N/A | N/A |
Card with the High Initial Bonus for Points/Miles:
The Ritz-Carlton Credit Card
Hilton HHonors Surpass Credit Card
Priority Club Rewards Credit Card
Fees
| Q3 2012 | Q2 2012 | Q3 2011 | Change from Last Quarter | Change from Last Year | |
| Average Maximum Late Fee | $33.19 | $33.09 | $32.65 | 0.30% | 1.65% |
| Average Foreign Transaction Fee | 2.23% | 2.22% | 2.46% | 0.45% | -9.35% |
| 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 | 2.88% | 2.97% | 2.75% | -3.03% | 4.73% |
Penalty APRs
| Q3 2012 | Q2 2012 | Q3 2011 | Change from Last Quarter | Change from Last Year | |
| Average | 28.28% | 28.51% | 28.40% | -1% | 0% |
| Range | 17.99% – 30.99% | 17.99% – 30.99% | 17.99% – 31.99% | N/A | N/A |
Cash Advances
| Q3 2012 | Q2 2012 | Q3 2011 | Change from Last Quarter | Change from Last Year | |
| Average APR | 22.35% | 22.27% | 22.46% | 0% | 0% |
| APR Range | 6.25% – 36.0% | 6.25% – 49.90% | 6.25% – 49.90% | N/A | N/A |
| Average Cash Advance Fee % | 3.75% | 3.73% | 3.74% | 0.54% | 0.27% |
| Average Cash Advance Fee $ Amount | $8.97 | $8.91 | $8.85 | 0.67% | 1.36% |
Credit Card Debt
| Q3 2012 | Q2 2012 | Q3 2011 | |
| Accumulation | $14.15 billion | $17.71 billion | $16.49 billiion |
| Percent Change from Previous Year | -14% | -8.6% | +166% |
Delinquency and Charge-Off Data (Not Seasonally Adjusted)
| Q3 2012 | Q2 2012 | Q3 2011 | Change from Last Quarter | Change from Last Year | |
| Delinquency Rate | 2.83% | 2.79% | 3.47% | 1.4% | -18.4% |
| Charge-Off | 3.83% | 4.24% | 5.63% | -9.7% | -32.0% |
Unemployment
| Q3 2012 | Q2 2012 | Q3 2011 | Change from Last Quarter | Change from Last Year | |
| Unemployment Rate | 8.1% | 8.2% | 9.1% | -1.2% | -11.0% |
Popular Consumer Complaints (Percentage of All Complaints Filed)
| Q3 2012 | Q2 2012 | Q3 2011 | Change from Last Quarter | Change from Last Year | |
| Billing Disputes | 15.0% | 21.3% | N/A | -29.5% | N/A |
| APR or Interest Rate | 12.7% | 13.3% | N/A | -4.5% | N/A |
| Identity theft / Fraud / Embezzlement | 5.9% | 8.1% | N/A | -26.6% | N/A |
| Closing/Cancelling Account | 6.7% | 6.1% | N/A | +9.3% | N/A |
| Collection Practices | 3.8% | 5.0% | N/A | -24.1% | N/A |
| Credit Reporting | 6.8% | 5.0% | N/A | +35.7% | N/A |
| Credit Card Protection / Debt Protection | 4.0% | 4.3% | N/A | -6.8% | N/A |
| Credit Determination | 3.4% | 3.7% | N/A | -7.1% | N/A |
| Payoff Process | 3.4% | 3.1% | N/A | +9.0% | N/A |
| Late Fee | 3.7% | 3.1% | N/A | +20.5% | N/A |
The statistics displayed for Q2 2012 reflect consumer complaints made in June 2012, the only month for which data was available. As a result, no historical comparisons are yet available.
Notable Q3 2012 Credit Card Offers
- No Balance Transfer Fee Slate Card from Chase – Provides a 0% introductory APR on both purchases and balance transfers for 15 months and does not charge a balance transfer fee
- First Progress Platinum Elite MasterCard Secured Credit Card – This card has one of the lowest annual fee-interest rate combinations on the secured card market, with a $29 annual fee and a 19.99% APR
Please find previous reports here:
- Q2 2012 Credit Card Landscape Report
- Q1 2012 Credit Card Landscape Report
- Q4 2011 Credit Card Landscape Report
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.
