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Average APR on credit cards drops to lowest level in five months

01/02/2012 - By Frank LoSchiavo

Interest rates on new credit card offers have been on the decline since the beginning of the new year.

Tag: Credit Card Processing

Interest rates on new credit card offers have been on the decline since the beginning of the new year, reflecting an attempt by the industry to drive up interest in credit card processing as a payment option.

According to the latest weekly rates report from CreditCard.com, the average annual percentage rate on a new card fell to the lowest level in five months this week. Specifically, the national average APR now stands at 14.91 percent - the lowest since last August. The figure is down considerably from the 15.14 percent noted at the beginning of the year and the record-high 15.22 percent recorded in mid-December.

"Meanwhile, rates haven't increased in seven weeks, equaling the longest such stretch we've seen since CreditCards.com began tracking rates in 2007," reports Matt Schulz for CreditCards.com. "These lower rates mean real money to consumers."

The news comes a day after the Conference Board reported a decline in consumer confidence for the month of January. With this report in mind, many analysts are wondering whether offers of low interest rates will be enough to encourage spending and borrowing activity.

Articles written by ChargeNational.com's editorial team. For more information, click here.

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