May has been filled with fickle news so far, such as the Gates’ divorce and cryptocurrency value swings, but credit card interest rates are a quiet constant in our lives. This week, the credit card industry also brought us news of a dog-friendly rewards card and several beefed-up welcome bonuses. This credit card news roundup contains what you should know about the cards in your wallet and new product releases, offers, or reports that might not be as trendy as Dogecoin, but won’t give you stock market whiplash.
What’s the Lowdown?
Here’s what has caught our attention since April 30, 2021.
Credit Card Interest Rate Changes Step Out Of The Spotlight
Unlike Bill and Melinda’s relationship status, credit card interest rates didn’t change significantly in April. The average credit card APR is now 20.28%, according to pricing data tracked by The Balance. That’s a skosh lower than it was in March, but exactly where it started the year. The Balance recorded a handful of small offer changes in April, such as the updated U.S. Bank State Farm-branded card terms, and added the new United Quest Card to our data pool, which was enough to move the average rate needle a hair. More dramatic credit card interest rate changes are rare these days as the Federal Reserve holds its benchmark rate (the federal funds rate) near zero, which is keeping borrowing costs low for consumers. The Fed cut its rate twice last spring, which sent credit card interest rates tumbling for a couple of months. Since then, the Fed has maintained a forecast that keeps interest rates low and steady for a while. Former Federal Reserve Chairwoman Janet Yellen caught us off guard Wednesday when she told The Atlantic rates may need to rise to counteract inflation driven by government spending, but don’t worry—for now, the cost of carrying a card balance is still lower than it was before the pandemic.
New Card Rewards Purchases Made For Your Furry Best Friend
Heads up, dog moms and cat dads. Credit One Bank and nonprofit animal welfare organization Best Friends Animal Society have partnered to launch a new credit card. The Best Friends Credit Card, which debuted Tuesday, offers 5% back on up to $5,000 spent at eligible pet supply and food stores each year, and 1% back on everything else. Cardholders will also get discounts on Best Friends-branded merchandise and pet lodging. Credit One Bank will donate 1% back of all net purchases made using the Best Friends Credit Card to the nonprofit, too.
Delta SkyMiles Cardholders: Be Nice To Your Flight Crew
Emotions may be running high after a cooped-up year, but don’t take stress or frustrations out on Delta Air Lines employees. It’s always a good idea to be kind, but now the miles and status earned with a Delta-branded credit card as a SkyMiles member may be on the line if you act out. The airline has updated its frequent flyer program rules to include a clause stating it may terminate your SkyMiles Membership if you exhibit abusive behavior while on a Delta flight. Abusive behavior includes personal threats, swearing, or insults hurled at a Delta employee, or destruction of Delta property, among other things. If you’re a loyal Delta flyer and lean on a Delta-branded American Express card to earn travel rewards, keep this in mind when you start traveling again. Your airline card would lose a lot of its shine if you’re not part of the SkyMiles frequent flyer program anymore.
