This week credit card issuers took a break from raising interest rates, as experts began to see signs that consumers’ access to credit may be starting to ease.
Banks left annual percentage rates unchanged
Giving a welcome break to cardholders, banks left annual percentage rates on new credit card offers unchanged at 12.71%. Consumers have to face costly borrowing terms, as due to the increased regulation banks struggle to protect their profits, as well as cardholder delinquencies have been encouraged by the economic downturn.
National average APR
Over the past six months, the national average APR rose nearly a half point from an average of 12.25% in July. Nevertheless, it is said by some experts that the situation is improving.
Fed’s Beige Book survey
That Outlook has been supported by Federal Reserve data. On Wednesday, the Fed’s Beige Book survey of its regional banks has showed that eight of 12 regions have notified some pickup in activity or improvement in conditions. According to banks the credit standards remained tight, among them half of the banks have reported increasingly tight credit standards.
Meanwhile, advise would be given to both cardholders and banks not to repeat the recent mistake of taking on excessive debt.