Posted by: Alina Comoreanu

Understanding the credit card climate is important for two reasons. First, credit card offers change regularly, based on the health of the economy and issuers’ business objectives. So being able to see the bigger picture – averages, trends, etc. – gives you a baseline against which to compare offers. And that will help you find the best credit card deals as well as ultimately save more money.

Monitoring the credit card landscape can also tell you a lot about the health of the U.S. consumer. For example, 0% introductory APRs and initial rewards bonuses dried up during the Great Recession. And the decline in consumer credit quality during that period was a big reason why.

To help people better understand the credit card market, WalletHub tracks interest rates, rewards and fees across credit segments, highlighting the most important trends in our quarterly landscape reports. Below, you can check out our latest findings, including a breakdown of how rates are reacting to the Federal Reserve’s recent moves.

1. Main Trends
2. Interest Rates
3. Rewards
4. Fees
5. Credit Card Complaints & Satisfaction
6. Prepaid Card Complaints

Main Credit Card Industry Trends

Interest Rates

• Minor changes on the average credit card APR, as this rose by only 3 basis points during Q2 2019 compared to the previous quarter.

• Average APRs for several credit card segments are at the highest point since WalletHub began tracking this data in 2010, including credit cards for people with good credit (20.93%), people with excellent credit (14.56%) and credit cards for business (18.47%).

Initial Perks (0% APRs & Rewards Bonuses)

• No major changes for the on-going rate at which credit card users earn rewards on purchases in Q2 2019 compared to last quarter, while initial bonuses have slightly increased.

• Credit card companies are emphasizing balance transfers over new-purchase financing, offering 0% intro rates for 14% longer. However, balance transfer fees have gotten 7.5% more expensive in the last 12 months.

  This discrepancy, which began to emerge in Q4 2013, reflects the fact that credit card debt levels are nearing record territory.

• Initial miles / points and cash-based rewards bonuses made big moves in the past 12 months, increasing in value by 28% and 19%, respectively.

Fees

• The average annual fee ($18.61) increased by 17.19% in the last year.

• The average foreign-transaction fee (1.49%) has fallen nearly 36% since Q4 2014 and more than 1% in the past year alone.

• The average cash advance fee has been decreasing for the past ten quarters by 44% and is now the greater of $8.22 or 3.27% of the amount withdrawn.

Complaints & Satisfaction

• The volume of credit card complaints filled with the CFPB in Q2 2019 decreased by almost 5% in the last year.

• Complaints related to “Closing/Cancelling account” (+16.6%), “Billing” (+15.0%) and “Identity theft / Fraud / Embezzlement” (+12.4%) increased the most during Q2. Complaints related to “Fees” (-13.6%) and “Payoff Process” (-10.7%) fell the most.

• Navy FCU had the most-satisfied credit card customers during the second quarter of 2019, earning a WalletHub Satisfaction Score of 91.86. Synchrony Bank cardholders were least pleased, with the issuer earning a score of just 73.86.

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Interest Rates

	Q3 2018 (vs. last yr)	Q4 2018 (vs. last yr)	Q1 2019 (vs. last yr)	Q2 2019 (vs. last yr)	Q2 2019 vs. Q1 2019 Change
Excellent Credit	14.22%(3.34%)	14.41%(3.74%)	14.49%(3.65%)	14.56%(2.61%)	0.48%
Good Credit	20.02%(5.76%)	20.31%(6.11%)	20.79%(6.56%)	20.93%(5.28%)	0.67%
Fair Credit	22.43%(1.08%)	22.57%(1.30%)	22.99%(2.91%)	23.25%(3.75%)	1.13%
Secured Credit Cards	18.79%(-0.90%)	18.81%(-1.62%)	18.54%(-3.08%)	18.65%(-2.71%)	0.59%
Student Credit Cards	17.57%(-0.17%)	17.61%(-0.96%)	16.86%(-5.33%)	16.47%(-6.58%)	-2.31%
Business Credit Cards	17.91%(5.41%)	18.31%(6.89%)	18.47%(7.63%)	18.47%(4.71%)	0.00%
Store Credit Cards	25.49%(2.31%)	25.74%(2.45%)	25.76%(2.01%)	25.81%(1.27%)	0.17%
Average Interest Rate for All New Offers	19.05%(2.31%)	19.24%(2.45%)	19.26%(2.01%)	19.29%(1.27%)	0.17%

The interest rates in the table above pertain to new accounts opened during the second quarter of 2019. For statistics illustrating what existing cardholders pay, please see our Historical Interest Rates page.

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Balance Transfer Landscape

	Q3 2018 (vs. last yr)	Q4 2018 (vs. last yr)	Q1 2019 (vs. last yr)	Q2 2019 (vs. last yr)	Q2 2019 vs. Q1 2019 Change
Average Length of 0% APR Intro Period (in months)	12.05(8.17%)	12.14(8.49%)	12.04(6.64%)	12.16(0.83%)	1.00%
Range of 0% APR Intro Periods (in months)	2 - 21 months	2 - 21 months	2.0 - 21.0 months	6 - 21 months	N/A
Average Regular APR for Cards that have 0% Intro APR on Balance Transfers	18.56%(4.39%)	18.87%(5.71%)	19.16%(6.21%)	19.26%(4.56%)	0.52%
Range of Regular APRs for Cards that have 0% Intro APR on Balance Transfers	6.49% - 30.99%	6.49% - 31.49%	6.49% - 31.49%	6.49% - 31.49%	N/A
Average Balance Transfer Fee for Cards with 0% Intro APR on Balance Transfers	2.84%(-1.39%)	2.84%(-1.73%%)	2.92%(3.18%)	2.90%(2.47%)	-0.68%

New Purchase Landscape

	Q3 2018 (vs. last yr)	Q4 2018 (vs. last yr)	Q1 2019 (vs. last yr)	Q2 2019 (vs. last yr)	Q2 2019 vs. Q1 2019 Change
Average Length of 0% Intro Period (in months)	10.53(7.78%)	10.61(7.06%)	10.54(4.88%)	10.65(0.57%)	1.04%
Range of 0% APR Intro Periods (in months)	2 - 24 months	2 - 24 months	2.0 - 24.0 months	6 - 24 months	N/A
Average Regular APR for Cards that have 0% Intro APR on New Purchases	18.85%(4.61%)	19.19%(6.14%)	19.56%(6.89%)	19.67%(4.96%)	0.56%
Range of regular APRs for Cards that have 0% Intro APR on Purchases	7.75% - 30.99%	7.75% - 31.49%	7.75% - 31.49%	7.99% - 31.49%	N/A

 

Penalty APRs

	Q3 2018 (vs. last yr)	Q4 2018 (vs. last yr)	Q1 2019 (vs. last yr)	Q2 2019 (vs. last yr)	Q2 2019 vs. Q1 2019 Change
Average	26.10%(-0.08%)	26.27%(0.92%)	26.26%(0.38%)	26.25%(0.27%)	-0.04%
Range	11.75% - 36.25%	11.75% - 36.75%	11.75% - 37.0%	11.75% - 37.0%	N/A

Cash Advances

	Q3 2018 (vs. last yr)	Q4 2018 (vs. last yr)	Q1 2019 (vs. last yr)	Q2 2019 (vs. last yr)	Q2 2019 vs. Q1 2019 Change
Average APR	21.10%(2.73%)	21.39%(4.49%)	21.60%(5.01%)	21.67%(3.09%)	0.32%
APR Range	6.24% - 36.0%	6.24% - 36.0%	6.24% - 144.24%	6.24% - 36.0%	N/A
Average Cash Advance Fee %	3.25%(-10.22%)	3.26%(-0.31%)	3.26%(-0.31%)	3.27%(0.62%)	0.31%
Average Cash Advance Fee $ amount	$9.47(-30.98%)	$8.37(-3.24%)	$8.19(-27.14%)	$8.22(-19.73%)	0.37%

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Rewards

Cash Back

	Q3 2018 (vs. last yr)	Q4 2018 (vs. last yr)	Q1 2019 (vs. last yr)	Q2 2019 (vs. last yr)	Q2 2019 vs. Q1 2019 Change
Average Base Earn Rate	1.06%(2.91%)	1.06%(2.91%)	1.06%(1.92%)	1.06%(0.00%)	0.00%
Range of Base Earn Rate	0.1% - 2.5%	0.1% - 2.5%	0.1% - 2.5%	0.1% - 2.5%	N/A
Average Initial Bonus	$147.00(28.95%)	$158.00(36.21%)	$154.48(19.75%)	$165.03(18.73%)	6.83%
Range of Initial Bonus	$10 - $1000	$10 - $2000	$10.0 - $500.0	$10 - $500	N/A

Miles or Points

	Q3 2018 (vs. last yr)	Q4 2018 (vs. last yr)	Q1 2019 (vs. last yr)	Q2 2019 (vs. last yr)	Q2 2019 vs. Q1 2019 Change
Average Base Earn Rate (in miles or points)	1.18(0.85%)	1.17(0.00%)	1.17(0.00%)	1.16(-0.85%)	-0.85%
Range of Base Earn Rate	0.33 - 10 miles / points	0.33 - 10.0 miles / points	0.2 - 10.0 miles / points	0.2 - 10 miles / points	N/A
Average Initial Bonus (in miles or points)	18,784(36.52%)	19,982(44.18%)	19,770(32.42%)	20,153(28.10%)	1.94%
Range of Initial Bonus	500 - 150,000 miles / points	500 - 200,000 miles / points	50 - 150,000 miles / points	500 - 15,0000 miles / points	N/A

 

 

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Fees

	Q3 2018 (vs. last yr)	Q4 2018 (vs. last yr)	Q1 2011 (vs. last yr)	Q2 2019 (vs. last yr)	Q2 2019 vs. Q1 2019 Change
Average Annual Fee	$16.51(4.36%)	$17.35(17.63%)	$18.15(16.72%)	$18.61(17.19%)	2.53%
Average Maximum Late Fee	$32.36(0.00%)	$32.41(0.00%)	$32.72(0.86%)	$32.94(1.89%)	0.67%
Average Foreign Transaction Fee	1.50%(-8.54%)	1.50%(-6.83%)	1.50%(-6.25%)	1.49%(-1.32%)	-0.67%
Foreign Transaction Fee Range	0.0% - 3.0%	0.0% - 3.0%	0.0% - 3.0%	0% - 3%	N/A
Average Balance Transfer Fee for Cards with Intro Balance Transfer APR	2.54%(-1.93%)	2.53%(-3.44%)	2.71%(6.27%)	2.72%(7.51%)	0.37%

 

 

Credit Card Complaints & Satisfaction

	Q3 2018 (vs. last yr)	Q4 2018 (vs. last yr)	Q1 2019 (vs. last yr)	Q2 2019 (vs. last yr)	Q2 2019 vs. Q1 2019 Change
Collection	31.88%(11.32%)	29.92%(9.66%)	31.31%(14.79%)	33.03%(21.09%)	3.61%
Billing	15.40%(-17.02%)	19.39%(1.12%)	17.59%(-8.22%)	17.71%(-7.61%)	15.00%
APR or interest rate	3.53%(-10.97%)	3.20%(-18.05%)	3.00%(-23.27%)	3.23%(-17.31%)	-8.52%
Identity theft / Fraud / Embezzlement	0.89%(-79.69%)	4.09%(0.06%)	3.70%(-9.55%)	4.38%(7.19%)	12.41%
Closing/Cancelling account	4.86%(-17.54%)	5.00%(-19.81%)	4.86%(-21.92%)	5.67%(-9.06%)	16.65%
Credit card protection / Debt protection	0.96%(-26.58%)	0.92%(-6.37%)	1.41%(44.16%)	1.15%(17.41%)	19.63%
Credit	2.60%(152.11%)	2.90%(156.49%)	3.12%(175.82%)	2.58%(128.13%)	-0.73%
Payoff process	7.77%(52.88%)	7.44%(40.42%)	7.08%(33.55%)	6.93%(30.81%)	-10.73%
Fees	5.78%(-21.11%)	5.67%(-16.80%)	5.77%(-15.31%)	5.00%(-26.64%)	-13.61%
Advertising and marketing	3.29%(-37.96%)	4.53%(-8.49%)	4.89%(-1.14%)	3.70%(-25.26%)	12.30%
Customer service / Customer relations	1.59%(5.79%)	1.56%(-11.45%)	1.59%(-9.80%)	1.50%(-14.76%)	-5.47%
Rewards	1.92%(-30.05%)	2.13%(-36.71%)	2.88%(-14.17%)	2.02%(-39.75%)	5.25%
Delinquent account	1.11%(-28.64%)	1.44%(-23.71%)	1.85%(-2.13%)	1.57%(-16.77%)	42.22%

 

 

Customer Satisfaction With Large Issuers

Rank	Issuer	WalletHub Satisfaction Score	CFPB Complaints Per $1 Billion Outstanding	Satisfactory Response	WalletHub Reviews
		Max 100 Points	Max 60 Points	Max 20 Points	Max 20 Points
1	Navy FCU	91.86	57.86	20.00	14.00
2	Discover	90.88	57.54	20.00	13.33
3	U.S. Bank	90.84	58.17	20.00	12.67
4	Amex	90.31	57.64	20.00	12.67
5	Fifth Third Bank	89.97	56.63	20.00	13.33
6	Chase	89.93	57.93	20.00	12.00
7	Bank of America	89.83	57.83	20.00	12.00
8	First National Bank of Omaha	89.07	57.07	20.00	12.00
9	PNC Bank	88.86	58.19	20.00	10.67
10	USAA	88.60	57.93	20.00	10.67
11	Barclays	87.70	55.70	20.00	12.00
12	BB&T Financial	87.57	58.24	20.00	9.33
13	Wells Fargo	87.51	56.84	20.00	10.67
14	Citibank	86.63	55.30	20.00	11.33
15	Capital One	86.56	55.22	20.00	11.33
16	TD Bank	84.30	51.63	20.00	12.67
17	Synchrony Bank	73.86	43.86	20.00	10.00

Methodology: WalletHub evaluated consumer satisfaction for 17 of the largest credit card issuers based on total outstanding balances. Each issuer was scored on a 100-point scale according to the following criteria:

1. CFPB Complaints Per $1 Billion Outstanding (maximum of 60 points)
   • 60 Points: No complaints
   • 0 Points: 135+ complaints
2. Satisfactory Response Rate To CFPB Complaints (maximum of 20 points)
   • 20 Points: 100%
   • 0 Points: 50%
3. Average WalletHub Rating (maximum of 20 points)
   • 20 Points: 5 stars
   • 0 Points: 2 stars or below

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Prepaid Card Complaints

	Q3 2018 (vs. last yr)	Q4 2018 (vs. last yr)	Q1 2019 (vs. last yr)	Q2 2019 (vs. last yr)	Q2 2019 vs. Q1 2019 Change
Trouble using the card	17.70%(314.50%)	40.06%(435.54%)	17.58%(-14.33%)	20.33%(171.85%)	15.65%
Advertising	2.65%(-20.03%)	3.51%(14.67%)	2.56%(-34.76%)	3.34%(9.24%)	30.36%
Unexpected or other fees	23.89%(29.30%)	12.87%(-32.46%)	19.05%(11.84%)	15.88%(-16.65%)	-16.64%
Problem getting a card or closing an account	14.16%(-57.92%)	9.06%(-70.39%)	17.58%(3.24%)	18.11%(-40.85%)	2.98%
Problem with overdraft	0.44%(-5.86%)	1.17%(72.00%)	0.73%(-16.12%)	0.56%(-18.07%)	-23.96%
Problem with a purchase or transfer	40.71%(3.48%)	33.04%(-14.80%)	42.12%(4.85%)	41.50%(7.02%)	-1.47%

This report was compiled using data from the 1,000+ credit card offers, monitored by WalletHub on a daily basis. Questions or requests for additional information can be directed to our media department.

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