Where to Find the Lowest Rates

Californians will have to go out of state to find low-rate bank credit cards. The average interest rate here is about 18%, unless your bank offers a lower percentage to preferred customers.

“Retailers and banks continue to sock it to consumers,” says state Assemblyman Rusty Areias (D-Los Banos). He is sponsoring AB 3344, a bill that would tie California credit card rates for both retailers (department stores) and banks to the rate the Internal Revenue Service charges on the underpayment of taxes, allowing the APR to be no more than 4% higher. At the current IRS rate of 5.1%, retailers and banks in California could charge only 9.1% APR.

Says Ken McEldowney, director of Consumer Action: “Anyone paying 17% or more in interest really should be shopping for a better card.” McEldowney’s San Francisco group publishes an annual survey of the lowest credit card rates, free to consumers who send a self-addressed, stamped envelope with 45 cents postage to Consumer Action, 116 New Montgomery St., Suite 223, San Francisco, Calif. 94105. The lowest APR Consumer Action researchers found in California was 14% at the Bank of Canton.

Ram Research in Maryland offers Cardtrak, a monthly newsletter containing names of banks with low interest credit cards, to consumers for $5 an issue. (Write Cardtrak, P.O. Box 1700, Frederick, Md. 21702.)

APRs are also published by several financial newspapers, among them the Wall Street Journal and Barron’s.

Or, you can purchase a list for $5 from Bankcard Holders of Americas by calling (800) 237-1800.

For unsecured cards offered nationally, BHA found that the Bank of Montana System in Great Falls, Mont., listed Visa and MasterCards at 12.25% variable, with a $19 annual fee.

Simmons First National Bank in Pine Bluff, Ark. offers an 8.5% variable rate, with a $25 annual fee for Arkansas residents; $35 out of state.

The Bank of New York, located in Newark, Del., has an 11.9% variable with no annual fee.