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Interest Rates Decrease For Business

Credit card interest rates have been rising significantly since the end of 2005. From January of 2006, consumer non-reward credit cards have seen a .73% increase and currently stand at 13.33%. This is quite a rise considering the fact that it is only March 2006 and interest rates went up almost an entire percent. However, interest rates to not look so bleak for businesses, who have seen a decline since the beginning of the year.

This week the average non-reward business credit card rate fell to 11.30%, just a shade less than when it started the year at 11.33%. Of note this week was Citi`s move to chop down the rate on its CitiBusiness card two full percentage points, to 10.49% from 12.49%. Citi also added a 12-month, zero-interest introductory offer to sweeten the deal. And they`re not the first issuer to increase its aggressiveness in courting small business owners. For a while now card issuers have been holding rates steady for business customers.

But to see an actual decrease in the average rate during a time of consistent hikes for consumers is surprising. It tells you there`s money to be made in the small business niche, and that no one is dominating that space right now. Business credit cards offering rewards did not follow the non-reward cards` movement backward, but neither did they move forward. The average rate remained at 13.42% for the third straight week, although up a bit from the 13.21% average rate at the beginning of the year.