Navigation » List of Schools, Subjects, and Courses » BUSAD 135 – Money and Banking » Discussion » Discussion 5- Credit Card Interest Rates Vs. Mortgage Rates » Discussion 5- Credit Card Interest Rates Vs. Mortgage Rates Sample Answers
Average credit card interest rates (APR) are about 17%, while the mortgage interest rates and car loan interest rates are below 4%. Explain the reason behind this huge difference in interest rates between credit cards and mortgages/car loans!
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Grading Rubric
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Criteria |
Ratings |
Pts |
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Professionalism: Proper grammar, spelling, citations, sources, good organization, readability, clear articulation of ideas, correct use of templates, etc. |
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10 pts |
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Thoroughness Follows instructions; response is well-researched and articulate; appropriate length; addresses all prompts and assignment criteria; thoughtful analysis |
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10 pts |
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Progression: Incorporates feedback and suggestions from instructor and peers; demonstrates continuous improvement |
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10 pts |
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Total Points: 30 |
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Interest rates on credit cards may appear to be exorbitant, substantially greater than those on mortgages or vehicle loans. The rationale for the seemingly high rates is risk to the lender, not