Terms for new credit cards have fallen in response to the cut in the Prime Rate, according to Mail Monitor, the direct mail tracking service from Synovate.
During October, the average single/go-to annual percentage rate based on credit card solicitations was 12.51%, down from 12.94% in third quarter. This is the rate that a card jumps to following its introductory or promotional rate period.
As a result, 39% of offers received by US households in October promoted fixed Single/Go-to APR’s compared to just 29% during the third quarter. The average Single/Go-to APR for fixed rate offers dropped to 10.55% from 11.03% over the same time period.
Issuers increasing the volume of lower fixed rate offers included Chase, Bank of America and Discover.
Discover introduced an 8.99% fixed rate offer in October while Chase and Bank of America mailings continued to promote fixed rates as low as 7.99%. The lowest fixed rates in October were from First National Bank of Omaha (5.99%) and RBS Citizens Bank (6.99%).
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