Q4 2012 Credit Card Landscape Report

Key Findings:

The value of initial rewards bonuses is on the rise: At $66.56, the average cash-based bonus is 11.19% higher than during the third quarter of 2012 and 14.88% higher than last year. In addition, the average points/miles-based bonus (10,336 points/miles) increased 9.14% from last quarter and 12.10% from last year.

0% introductory interest rate offers have peaked: At roughly 10 months, the length of the average 0% term has remained largely unchanged for two consecutive quarters, indicating that the value of such offers has plateaued.

Regular rates have increased slightly: Across the credit spectrum, interest rates for unsecured credit cards were higher in Q4 2012 than both the previous quarter and the prior year. Secured credit card interest rates are down 0.50% and 7.63% compared to last quarter and last year, respectively.

Penalty APRs remain static and very high: At 28.23%, the average penalty APR did not change from Q3 2012.

Foreign transaction fees are stabilizing: While the average foreign transaction fee has fallen more than 7% since last year, the downward trend is beginning to flatten out, as the 2.25% average we saw in Q4 2012 represents a 0.90% increase from the previous quarter.

Consumer complaints reflect rate stabilization and indicate increased consumer awareness of credit reporting errors: According to the Consumer Financial Protection Bureau (CFPB), APR-related complaints fell nearly 20% during Q4 2012, while those related to credit reports increased more than 50%.

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.

	Q4 2012	Q3 2012	Q4 2011	Change from Last Quarter	Change from Last Year
Excellent Credit	13.01%	12.99%	12.93%	0.15%	0.62%
Good Credit	17.24%	17.17%	17.03%	0.41%	1.23%
Fair Credit	19.58%	19.18%	19.37%	2.09%	1.08%
Secured Credit Cards	17.92%	18.01%	19.40%	-0.50%	-7.63%
Student Credit Cards	16.61%	16.40%	15.91%	1.28%	4.40%
Business Credit Cards	15.38%	15.19%	15.28%	1.25%	0.65%

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 2012	Q3 2012	Q4 2011	Change from Last Quarter	Change from Last Year
Average Length of 0% APR Intro Period (in months)	10.05	10.06	9.67	-0.10%	3.93%
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	16.60%	16.59%	16.68%	0.06%	-0.48%
Range of Regular APRs for Cards that have 0% Intro APR on Balance Transfers	7.25% – 25.99%	8.15% – 25.99%	7.24% – 25.90%	N/A	N/A
Average Balance Transfer Fee for Cards with 0% Intro APR on Balance Transfers	3.02%	3.07%	2.89%	-1.63%	4.50%

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).

	Q4 2012	Q3 2012	Q4 2011	Change from Last Quarter	Change from Last Year
Average Length of 0% Intro Period (in months)	9.88	10.01	9.26	-1.30%	6.70%
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 New Purchases	16.26%	16.49%	16.43%	-1.39%	-1.03%
Range of Regular APRs for Cards that have 0% Intro APR on Purchases	6.99% -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

	Q4 2012	Q3 2012	Q4 2011	Change from Last Quarter	Change from Last Year
Average Base Earn Rate	0.97	0.98	0.99	-1.02%	-2.02%
Range of Base Earn Rate	0.25% – 2%	0.25% – 2%	0.25% – 2%	N/A	N/A
Average Initial Bonus	$66.56	$59.86	$57.94	11.19%	14.88%
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
NEA Credit Card
Blue Cash Preferred from American Express

Miles or Points

	Q4 2012	Q3 2012	Q4 2011	Change from Last Quarter	Change from Last Year
Average Base Earn Rate (in miles or points)	1.10	1.08	1.06	1.85%	3.77%
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)	10,336	9,470	9,220	9.14%	12.10%
Range of Initial Bonus	500 – 85,000 miles/points	500 – 70,000 miles/points	500 – 60,000 miles/Points	N/A	N/A

Card with the High Initial Bonus for Points/Miles:
Club Carlson Premier Rewards Visa Signature Credit Card
Club Carlson Business Rewards Credit Card
The Ritz-Carlton Credit Card

Fees

	Q4 2012	Q3 2012	Q4 2011	Change from Last Quarter	Change from Last Year
Average Maximum Late Fee	$33.33	$33.19	$32.70	0.42%	1.93%
Average Foreign Transaction Fee	2.25%	2.23%	2.42%	0.90%	-7.02%
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	2.80%	2.88%	2.85%	-2.78%	-1.75%

Penalty APRs

	Q4 2012	Q3 2012	Q4 2011	Change from Last Quarter	Change from Last Year
Average	28.23%	28.28%	28.46%	0.00%	-1.00%
Range	17.99% – 30.24%	17.99% – 30.99%	17.99% – 31.99%	N/A	N/A

Cash Advances

	Q4 2012	Q3 2012	Q4 2011	Change from Last Quarter	Change from Last Year
Average APR	22.36%	22.35%	22.26%	0.00%	-1.00%
APR Range	6.25% – 36.0%	6.25% – 36.00%	6.25% – 49.90%	N/A	N/A
Average Cash Advance Fee %	3.87%	3.75%	3.75%	3.20%	3.20%
Average Cash Advance Fee $ Amount	$8.86	$8.97	$8.86	-1.23%	0.00%

Credit Card Debt

	Q4 2012	Q3 2012	Q4 2011
Accumulation	N/A	$14.15 billion	$44.32 billiion
Percent Change from Previous Year	N/A	-14%	+48%

Delinquency and Charge-Off Data (Not Seasonally Adjusted)

	Q4 2012	Q3 2012	Q4 2011	Change from Last Quarter	Change from Last Year
Delinquency Rate	2.78%	2.83%	3.32%	-1.77%	-16.27%
Charge-Off	3.86	3.83%	4.53%	.78%	-14.79%

Unemployment

	Q4 2012	Q3 2012	Q4 2011	Change from Last Quarter	Change from Last Year
Unemployment Rate	7.8%	8.1%	8.7%	-3.7%	-10.34%

Popular Consumer Complaints (Percentage of All Complaints Filed)

	Q4 2012	Q3 2012	Q4 2011	Change from Last Quarter	Change from Last Year
Billing	20.1%	20.4%	N/A	-1.9%	N/A
APR or Interest Rate	10.3%	12.7%	N/A	-19.3%	N/A
Identity theft / Fraud / Embezzlement	4.9%	5.9%	N/A	-18.4%	N/A
Closing/Cancelling Account	6.3%	6.7%	N/A	-5.3%	N/A
Collection	7.7%	7.8%	N/A	-0.9%	N/A
Credit Reporting	10.4%	6.8%	N/A	52.6%	N/A
Credit Card Protection / Debt Protection	3.4%	4.0%	N/A	-15.3%	N/A
Credit	5.9%	6.5%	N/A	-10.3%	N/A
Payoff Process	2.6%	3.4%	N/A	-23.6%	N/A
Fees	7.9%	7.2%	N/A	10.7%	N/A

Notable Q4 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
Harley Davidson Secured Credit Card – Not only is this one of the few secured credit cards that does not charge an annual fee, but it’s also one of the only ones that offers rewards. You get one point per dollar spent as well as an entry to win a new motorcycle each month. While the Harley Davidson branding might mislead or turn off some potential customers, its exceptional terms are really all that matters.

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.