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CFPB Survey: Credit Unions Offer Lower Credit Card Rates

The CFPB survey released Friday, reveals that credit unions and small banks offer lower interest rates than the 25 largest credit card companies.

Key findings of the Terms of Credit Card Product survey include:

• The difference in reported Purchase Annual Percentage Rate (APR) between the largest and small issuers translated to average savings of $400 to $500 a year for a consumer with an average balance of $5,000 using a small bank or credit union’s card.
• Nearly half of the largest credit card issuers reported offering cards with a maximum purchase APR over 30%.
• Products offered by large issuers were three times as likely to include an annual fee than those at small institutions. The average size of annual fees for the largest issuers was approximately 70% higher than at small institutions.

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The CFPB says its newly updated Terms of Credit Card Products survey is one part of the agency’s efforts to increase competition throughout the credit card market.

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