The CFPB today reported on the first set of results from the newly updated Terms of Credit Card Plans survey. The survey data reveal that large banks are offering worse credit card terms and interest rates than small banks and credit unions, regardless of credit risk.
Source: Consumer Financial Protection Bureau Release
In fact, the 25 largest credit card issuers charged customers interest rates of 8 to 10 points higher than small- and medium-sized banks and credit unions. This difference can translate to $400 to $500 in additional annual interest for the average cardholder.
Among some the survey’s key findings:
- Large issuers offered worse rates across credit scores
- Fifteen issuers reported credit cards with interest rates above 30%
- Large issuers were more likely to charge annual fees
