WASHINGTON—A new report indicates that major issuers are making adjustments to save money as the credit card battle—particularly around rewards—heats up.
WalletHub’s latest Credit Card Landscape Report reveals that the average credit card APR increased 22 basis points during Q2. At the same time, 0% balance transfer periods have been getting shorter, decreasing by 5% since the end of last year.
“While initial rewards bonuses remain near historical highs, Q2 2017 saw some volatility among such offers, with cash-based bonuses increasing in value by 5% and points/miles bonuses falling 9% compared to last quarter,” WalletHub stated.
The average annual credit card fee ($16.17) fell by 1.5% during Q2 2017 and is down 3.81% year over year. Also, the average foreign-transaction fee (1.76%) has fallen 24% since Q4 2014, the report states.
“The average cash advance fee is now the greater of $13.89 or 3.89% of the amount withdrawn, which marks a 57% increase in less than five years. In other words, credit card companies are testing the limits of how much they can exploit the weakness of cash-hungry customers. And nothing’s stopped them yet,” WalletHub said.