Key Findings:
- Regular APRs rose across the board relative to Q4 2010 – Relative increases between 3.5% and 9.5% were observed among credit cards for excellent, good, and fair credit as well as secured credit cards, whereas interest rates for student and business credit cards rose less than 1% in relative terms.
- 0% introductory terms are over 27% longer than in Q4 2010 – 0% intro terms now range from 6 to 21 months, a development that most likely explains the aforementioned rise in regular APRs. 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 on through higher regular APRs.
- Balance transfer fees & foreign exchange fees fell, cash advance fees rose - With fees now more transparent thanks to the CARD Act, it seems that competition is driving down those most important to consumers. Cash advances continue to signal risk to creditors, however, making it unlikely that cash advance fees will fall anytime soon.
- Initial rewards bonuses increased significantly – The average cash back initial bonus is over 100% higher relative to Q4 2010; points and miles bonuses are up nearly 10%.
- Cash back rewards are 60% more lucrative – While the card with the best cash back rate across all purchases offered only 1.25% in Q4 2010, base rates as high as 2% are now available.
Please find a breakdown of pertinent credit card data for Q4 2011 below.
Interest Rate Landscape
The table below summarizes average interest rates based on consumers’ credit standing.
| Q4 2011 | Q3 2011 | Q4 2010 | Change from Last Quarter | Change from Last Year | |
| Excellent Credit | 12.93% | 12.81% | 12.49% | 0.94% | 3.52% |
| Good Credit | 17.03% | 17.04% | 16.18% | -0.06% | 5.25% |
| Fair Credit | 19.37% | 19.34% | 17.91% | 0.16% | 8.15% |
| Secured Credit Cards |
19.40% | 19.40% | 17.72% | 0.00% | 9.48% |
| Student Credit Cards |
15.91% | 15.97% | 15.87% | -0.38% | 0.25% |
| Business Credit Cards |
15.28% | 15.22% | 27.83% | -0.39% | 0.66% |
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.
| Q4 2011 | Q3 2011 | Q4 2010 | Change from Last Quarter | Change from Last Year | |
| Average Length of 0% APR Intro Period (in months) | 9.67 | 7.44 | 7.44 | 7.08% | 29.97% |
| Range of 0% APR Intro Periods (in months) |
6-21 | 6-21 | 6-24 | N/A | N/A |
| Average Regular APR for Cards that have 0% Intro APR on Balance Transfers |
16.68% | 16.66% | 16.15% | 0.12% | 3.28% |
| Range of Regular APRs for Cards that have 0% Intro APR on Balance Transfers | 7.24% – 24.99% | 7.24% – 24.99% | 7.24% – 23.99% | N/A | N/A |
| Average Balance Transfer Fee for Cards with 0% Intro APR on Balance Transfers |
2.89% | 2.82% | 3.09% | 2.48% | -6.47% |
Long 0% APR Intro Period for Balance Transfers:
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).
| Q4 2011 | Q3 2011 | Q4 2010 | Change from Last Quarter | Change from Last Year | |
| Average Length of 0% Intro Period (in months) | 9.26 | 8.99 | 7.29 | 3.00% | 27.02% |
| Range of 0% APR Intro Periods (in months) |
6-21 | 5-21 | 6-15 | N/A | N/A |
| Average Regular APR for Cards that have 0% Intro APR on New Purchases |
16.43% | 16.50% | 16.10% | -0.42% | 2.05% |
| Range of Regular APRs for Cards that have 0% Intro APR on Purchases | 7.50% -24.90% | 7.50% -24.90% | 7.50% -23.99% | N/A | N/A |
Long 0% APR Intro Period for New Purchases:
Citi Platinum Select MasterCard
Citi Simplicity 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
| Q4 2011 | Q3 2011 | Q4 2010 | Change from Last Quarter | Change from Last Year | |
| Average Base Earn Rate | 0.99 | 1.00 | 0.94 | -1.00% | 5.32% |
| Range of Base Earn Rate |
0.25% – 2% | 0.25% – 2% | 0.5% – 1.25% | N/A | N/A |
| Average Initial Bonus | $57.94 | $49.70 | $28.79 | 16.58% | 101.25% |
| Range of Initial Bonus | $10 – $250 | $10 – $250 | $10 – $100 | N/A | N/A |
High Initial Cash Back Bonus: Ink Cash Business Card
Miles or Points
| Q4 2011 | Q3 2011 | Q4 2010 | Change from Last Quarter | Change from Last Year | |
| Average Base Earn Rate (in miles or points) | 1.06 | 1.06 | 1.05 | 0.00% | 0.95% |
| 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) | 9,221 | 9,620 | 8,422 | -4.15% | 9.49% |
| Range of Initial Bonus | 500 – 60,000 miles/points | 500 – 50,000 miles/points | 500 – 40,000 miles/Points | N/A | N/A |
High Initial Bonus for Points/Miles:
Hilton HHonors Surpass Credit Card
Fees
| Q4 2011 | Q3 2011 | Q4 2010 | Change from Last Quarter | Change from Last Year | |
| Average Maximum Late Fee | $32.70 | $32.65 | $32.79 | 0.15% | -0.27% |
| Average Foreign Transaction Fee | 2.42% | 2.46% | 2.50% | -1.63% | -3.20% |
| 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 | 2.85% | 2.75% | 3.03% | 3.64% | -5.94% |
Penalty APRs
| Q4 2011 | Q3 2011 | Q4 2010 | Change from Last Quarter | Change from Last Year | |
| Average | 28.46% | 28.40% | 27.83% | 0% | 2% |
| Range | 17.99% – 31.99% | 17.99% – 31.99% | 15.99% – 30.99% | N/A | N/A |
Cash Advances
| Q4 2011 | Q3 2011 | Q4 2010 | Change from Last Quarter | Change from Last Year | |
| Average APR |
22.26% | 22.46% | 22.08% | -1% | 2% |
| APR Range |
6.25% – 49.90% | 6.25% – 49.90% | 6.25% – 30.45% | N/A | N/A |
| Average Cash Advance Fee % |
3.75% | 3.74% | 3.59% | 0.27% | 4.46% |
| Average Cash Advance Fee $ Amount |
$8.86 | $8.85 | $8.83 | 0.11% | 0.34% |
Credit Card Debt
| Q4 2011 | Q3 2011 | Q4 2010 | |
| Accumulation |
$45.48 billiion | $16.8 billion | $35 billion |
| Percent Change from Previous Year |
+30% | +154% | +54% |
Delinquency and Charge-Off Data (Not Seasonally Adjusted)
| Q4 2011 | Q3 2011 | Q4 2010 | Change from Last Quarter | Change from Last Year | |
| Delinquency Rate |
3.32% | 3.47% | 4.22% | -4% | -21% |
| Charge-Off | 7.53% | 5.63% | 7.70% | 25% | -2% |
Unemployment
| Q4 2011 | Q3 2011 | Q4 2010 | Change from Last Quarter | Change from Last Year | |
| Unemployment Rate |
8.5% | 9.1% | 9.4% | -6.6% | -9.6% |
Notable New Credit Card Offer
- Slate from Chase: No balance transfer fee with 0% APR on balance transfers for 6 – 12 months based on creditworthiness
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.
