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

• The average credit card APR rose 16 basis points during Q4 2017, due in large part to the Federal Reserve’s December rate hike.

• 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 (19.14%), people with excellent credit (13.89%) and students (17.78%).

Initial Perks (0% APRs & Rewards Bonuses)

• The rate at which credit card users earn rewards on purchases is trending upward.

• Credit card companies are emphasizing balance transfers over new-purchase financing, offering 0% intro rates for 13% longer and charging slightly lower regular APRs. Balance transfer fees have also gotten 2.69% cheaper 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 rewards bonuses made big moves in the past 12 months, with cash-based bonuses increasing in value by 14.42% and points/miles bonuses falling 17.82%.

Fees

• The average annual fee ($15.75) is down 6.14% year over year.

• The average foreign-transaction fee (1.61%) has fallen 36% since Q4 2014 and more than 20% in the past year alone.

• The average cash advance fee is now the greater of $12.65 or 3.27% of the amount withdrawn, which marks a 43% increase in five years.

  In other words, credit card companies are testing the limits of how much they can exploit cash-hungry customers. And nothing’s stopped them yet.

Complaints & Satisfaction

• A record number of credit card complaints were filed with the CFPB in Q4 2017, as complaints rose more than 38% from Q3.

• Complaints related to “Customer service / Customer relations” (+17.6%), “Rewards” (+22.1%) and “Delinquent account” (+22.1%) increased the most during Q4. Complaints related to “Credit card protection / Debt protection” (-25.1%) fell the most.

• USAA had the most-satisfied credit card customers during the fourth quarter of 2017, earning a WalletHub Satisfaction Score of 96.86. Synchrony Bank cardholders were least pleased, with the issuer earning a score of just 57.18.

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Interest Rates

	Q4 2016 (vs. last yr)	Q1 2017 (vs. last yr)	Q2 2017 (vs. last yr)	Q3 2017 (vs. last yr)	Q3 vs. Q2 Change
Excellent Credit	13.16%(2.49%)	13.17%(1.15%)	13.56%(4.15%)	13.76%(5.20%)	1.47%
Good Credit	18.14%(2.49%)	18.50%(3.24%)	18.66%(4.13%)	18.93%(4.24%)	1.45%
Fair Credit	22.00%(3.97%)	21.96%(4.72%)	21.97%(4.77%)	22.19%(3.35%)	1.00%
Secured Credit Cards	18.65%(-1.32%)	18.59%(-4.62%)	18.72%(-3.95%)	18.96%(0.90%)	1.28%
Student Credit Cards	17.47%(0.63%)	17.23%(-1.20%)	17.63%(1.09%)	17.60%(2.03%)	-0.17%
Business Credit Cards	16.34%(3.09%)	16.20%(1.19%)	16.36%(2.19%)	16.99%(5.79%)	3.85%
Store Credit Cards	24.30%(3.17%)	24.27%(0.76%)	24.56%(1.96%)	24.91%(3.45%)	1.43%
Average Interest Rate for All New Offers	18.16%(3.19%)	18.14%(0.76%)	18.36%(1.96%)	18.62%(3.45%)	1.43%

The interest rates in the table above pertain to new accounts opened during the fourth quarter of 2017. For statistics illustrating what existing cardholders pay, please see our Historical Interest Rates page.

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Balance Transfer Landscape

	Q4 2016 (vs. last yr)	Q1 2017 (vs. last yr)	Q2 2017 (vs. last yr)	Q3 2017 (vs. last yr)	Q3 vs. Q2 Change
Average Length of 0% APR Intro Period (in months)	11.55(3.40%)	11.18(1.45%)	10.94(-0.73%)	11.14(-1.42%)	1.83%
Range of 0% APR Intro Periods (in months)	6-24 months	6-24 months	6-24 months	6 - 24 months	N/A
Average Regular APR for Cards that have 0% Intro APR on Balance Transfers	17.51%(1.74%)	17.34%(0.23%)	17.34%(0.23%)	17.78%(2.13%)	2.54%
Range of Regular APRs for Cards that have 0% Intro APR on Balance Transfers	6.45% - 26.49%	6.5% - 26.74%	6.7% - 26.99%	7.0% - 30.24%	N/A
Average Balance Transfer Fee for Cards with 0% Intro APR on Balance Transfers	2.97%(-2.30%)	2.89%(-4.30%)	2.87%(-4.97%)	2.88%(-4.95%)	0.35%

New Purchase Landscape

	Q4 2016 (vs. last yr)	Q1 2017 (vs. last yr)	Q2 2017 (vs. last yr)	Q3 2017 (vs. last yr)	Q3 vs. Q2 Change
Average Length of 0% Intro Period (in months)	9.85(2.60%)	9.81(2.08%)	9.71(1.04%)	9.77(-0.51%)	0.62%
Range of 0% APR Intro Periods (in months)	6-21 months	6-21 months	6-21 months	6 - 21 months	N/A
Average Regular APR for Cards that have 0% Intro APR on New Purchases	17.86%(1.30%)	17.61%(-0.84%)	17.56%(-1.13%)	18.02%(2.15%)	2.62%
Range of regular APRs for Cards that have 0% Intro APR on Purchases	7.15% -29.49%	6.5% - 27.49%	6.75% - 29.99%	7.0% - 30.24%	N/A

 

Penalty APRs

	Q4 2016 (vs. last yr)	Q1 2017 (vs. last yr)	Q2 2017 (vs. last yr)	Q3 2017 (vs. last yr)	Q3 vs. Q2 Change
Average	28.04%(0.39%)	26.89%(-3.79%)	26.06%(-3.65%)	26.12%(-6.61%)	0.23%
Range	16.99% - 30.49%	13.49% - 32.99%	12.0% - 31.99%	12.25% - 35.75%	N/A

Cash Advances

	Q4 2016 (vs. last yr)	Q1 2017 (vs. last yr)	Q2 2017 (vs. last yr)	Q3 2017 (vs. last yr)	Q3 vs. Q2 Change
Average APR	22.70%(0.89%)	22.49%(-0.75%)	20.21%(-10.81%)	20.54%(-9.36%)	1.63%
APR Range	6.75% - 36.00%	6.5% - 36.0%	5.24% - 36.0%	5.24% - 36.0%	N/A
Average Cash Advance Fee %	4.01%(-0.25%)	3.95%(-1.25%)	3.89%(-2.75%)	3.62%(-9.50%)	-6.94%
Average Cash Advance Fee $ amount	$14.73(1.52%)	$13.93(-5.24%)	$13.89(-5.51%)	$13.72(-6.73%)	-1.22%

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Rewards

Cash Back

	Q4 2016 (vs. last yr)	Q1 2017 (vs. last yr)	Q2 2017 (vs. last yr)	Q3 2017 (vs. last yr)	Q3 vs. Q2 Change
Average Base Earn Rate	1.02%(2.00%)	1.02%(2.00%)	1.03%(3.00%)	1.03%(0.98%)	0.00%
Range of Base Earn Rate	0.25% - 2%	0.25% - 2.0%	0.1% - 2.0%	0.1% - 2.0%	N/A
Average Initial Bonus	$102.26(2.71%)	$103.58(4.93%)	$108.84(10.26%)	$114.03(11.63%)	4.77%
Range of Initial Bonus	$10 - $500	$10 - $500	$10 - $500	$10 - $500	N/A

Miles or Points

	Q4 2016 (vs. last yr)	Q1 2017 (vs. last yr)	Q2 2017 (vs. last yr)	Q3 2017 (vs. last yr)	Q3 vs. Q2 Change
Average Base Earn Rate (in miles or points)	1.17(0.86%)	1.18(1.72%)	1.16(0.00%)	1.17(0.86%)	0.86%
Range of Base Earn Rate	0.01 - 10 miles / points	0.2 - 10.0 miles / points	0.25 - 10.0 miles / points	0.25 - 10.0 miles / points	N/A
Average Initial Bonus (in miles or points)	16,864(11.75%)	15,579(9.80%)	14,114(-0.52%)	13,759(-12.16%)	-2.52%
Range of Initial Bonus	1,000 - 100,000 miles / points	1,000 - 100,000 miles / points	500 - 85,000 miles / points	500 - 100,000 miles / points	N/A

 

 

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Fees

	Q4 2016 (vs. last yr)	Q1 2017 (vs. last yr)	Q2 2017 (vs. last yr)	Q3 2017 (vs. last yr)	Q3 vs. Q2 Change
Average Annual Fee	$16.78(1.64%)	$16.42(-2.32%)	$16.17(-3.81%)	$15.82(-3.65%)	-2.16%
Average Maximum Late Fee	$35.50(-0.20%)	$34.36(-2.77%)	$34.50(-2.38%)	$32.36(-8.74%)	-6.20%
Average Foreign Transaction Fee	1.97%(-7.51%)	1.90%(-8.65%)	1.76%(-15.38%)	1.64%(-18.81%)	-6.82%
Foreign Transaction Fee Range	0% - 3%	0.0% - 3.0%	0.0% - 3.0%	0.0% - 3.0%	N/A
Average Balance Transfer Fee for Cards with Intro Balance Transfer APR	3.04%(0.00%)	2.71%(-10.86%)	2.60%(-14.47%)	2.59%(-16.18%)	-0.38%

 

 

Credit Card Complaints & Satisfaction

	Q4 2016 (vs. last yr)	Q1 2017 (vs. last yr)	Q2 2017 (vs. last yr)	Q3 2017 (vs. last yr)	Q3 vs. Q2
Collection	22.66%(-40.58%)	27.99%(-5.25%)	29.04%(3.10%)	28.64%(11.00%)	-1.39%
Billing	18.48%(7.00%)	18.53%(8.27%)	19.06%(10.50%)	18.56%(10.19%)	-2.63%
APR or interest rate	3.36%(2.32%)	2.44%(-33.97%)	2.80%(-17.48%)	3.97%(42.30%)	41.51%
Identity theft / Fraud / Embezzlement	9.02%(14.61%)	7.56%(-6.31%)	4.88%(-40.46%)	4.38%(-48.40%)	-10.41%
Closing/Cancelling account	5.43%(7.03%)	5.38%(-5.00%)	5.47%(6.09%)	5.89%(15.13%)	7.75%
Credit card protection / Debt protection	2.40%(17.34%)	2.54%(38.55%)	1.28%(-28.48%)	1.31%(-27.49%)	2.43%
Credit	3.84%(-1.87%)	3.50%(2.87%)	1.61%(-59.49%)	1.03%(-76.04%)	-35.90%
Payoff process	1.89%(0.20%)	1.59%(-11.08%)	4.20%(92.70%)	5.08%(235.28%)	20.91%
Fees	5.41%(23.06%)	4.62%(-16.15%)	7.37%(58.44%)	7.33%(59.34%)	-0.63%
Advertising and marketing	2.49%(-7.15%)	2.08%(-24.43%)	4.26%(54.67%)	5.31%(82.04%)	24.80%
Customer service / Customer relations	3.28%(-2.74%)	3.30%(13.96%)	1.82%(-41.27%)	1.50%(-58.98%)	-17.69%
Rewards	3.16%(20.34%)	3.16%(26.65%)	2.26%(-30.76%)	2.75%(-53.91%)	21.48%
Delinquent account	2.83%(-25.47%)	3.07%(-19.07%)	1.67%(-46.64%)	1.55%(-36.55%)	-7.13%

 

 

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	USAA	96.49	57.75	20.00	18.74
2	PNC Bank	94.15	58.08	20.00	16.07
3	First National Bank of Omaha	93.62	58.07	20.00	15.56
4	BB&T Financial	93.44	59.02	20.00	14.42
5	Discover	93.32	58.15	20.00	15.17
6	Navy FCU	92.68	57.62	20.00	15.07
7	Chase	92.31	58.03	20.00	14.27
8	Capital One	92.13	55.63	20.00	16.50
9	U.S. Bank	91.89	58.43	20.00	13.46
10	Barclays	91.38	54.72	20.00	16.67
11	Amex	91.05	58.04	20.00	13.02
12	Wells Fargo	89.92	56.96	20.00	12.97
13	Bank of America	89.81	58.17	20.00	11.64
14	Citibank	88.54	55.67	20.00	12.87
15	TD Bank	87.05	52.30	20.00	14.76
16	Fifth Third Bank	86.92	56.30	20.00	10.63
17	Synchrony Bank	64.75	44.07	20.00	0.68

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

	Q4 2016 (vs. last yr)	Q1 2017 (vs. last yr)	Q2 2017 (vs. last yr)	Q3 2017 (vs. last yr)	Q3 vs. Q2
Trouble using the card	3.67%(-61.49%)	3.00%(-44.05%)	2.48%(-50.60%)	4.27%(-7.94%)	72.04%
Advertising	2.75%(292.01%)	1.91%(-33.24%)	1.24%(-88.11%)	3.32%(71.85%)	167.61%
Unexpected or other fees	8.26%(194.00%)	4.63%(-23.71%)	22.31%(-89.30%)	18.48%(-12.96%)	-17.17%
Problem getting a card or closing an account	19.27%(5.54%)	20.98%(10.84%)	30.99%(-70.27%)	33.65%(26.31%)	8.58%
Problem with overdraft	26.61%(-19.37%)	23.43%(-39.80%)	1.24%(-61.78%)	0.47%(-59.08%)	-61.77%
Problem with a purchase or transfer	1.38%(37.20%)	0.82%(-67.30%)	42.15%(-64.33%)	39.34%(-10.63%)	-6.67%

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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