Part of this increase may be attributable to the effect of the prime rate on the variable cards surveyed. A chart of the lowest rate cards appears in Consumer Action News . Tiered interest rates Almost one-third of surveyed issuers only would quote a range of rates or their highest rates, because they said their APRs are based on each applicant's personal credit history. They are American Express, Associates National Bank, Bank of America, Capital One, Chase Manhattan Bank, Discover Bank, Household Bank, MBNA America, Next Bank, Providian Financial, Provident Bank, US Bank, USAA Federal Savings Bank and Wells Fargo Bank. With these banks, applicants with the best records of handling credit are supposed to get the lowest available rates.
Several banks have escalating penalty rates tied to the severity of the late payment.
First USA cardholders who make one late payment during the introductory rate period will lose their low teaser rate, and the APR will increase to the cardholder's current non-introductory rate. A series of rate hikes awaits delinquent Next Card users. The majority of teaser rates last for six months and many have the same rate on balance transfers. MBNA America Bank doesn't have promotional rates on purchases, but instead offers a lower four-month introductory rate for balance transfers. Fleet Bank's Fusion Card offers zero interest only when new cardholders transfer a balance from another credit card.