You've choosen:
INFORMATION CENTER
News and Articles about Credit Cards...
Read about Credit Cards before Apply!
News about Credit Cards
Credit card interest rates continue to rise
[12:00:00 AM Wednesday, February 09, 2011]
As per the latest data available, credit card interest rates are continuing to rise at an alarmingly high rate, when compared to the previous rates. The rates have gone up to an all-time high. Even a couple of years ago, the average rates were close to 11%, however, the average now is below 15% which could have a serious impact on anyone who will have to carry balances.
The APR’s had peaked to around 14.78% during November and have managed to inch down to around 14.72% average.
Since credit card debts are on the decline, banks are trying to compensate for that loss by increasing the interest rates. Now people are not holding much of the debt and hence the hike in rates.
Even before the implementation of the CARD Act many lenders had raised the APRs well in advance. This was done because there are regulations with regard to hiking the interest rates. Hence, banks kept the baseline interest rates higher, so that they will be in a safer position. Issuers have also been marketing the low promotional rates quite aggressively. So, if you are aware that you will have a revolving balance in the future, you could opt for a low rate which will last for many months.
Although there has been talk about the caps on interest rates by some legislators, there seems to be no such thing in the CARD Act and implementing something like this now, is quite unlikely.
Comments not found
The Latest Articles
[October 26, 2011]
Just because you don`t have a rewards credit card, doesn`t mean that your credit card can`t reward you. According to a MasterCard survey, 55% of consumers don`t know the extent of the benefits that their credit cards offer.
[August 31, 2011]
Every adult likes to travel light. The convenience of shopping without carrying an enormous wallet is something this generation has taken for granted. Credit cards are also a huge status symbol. Every adult remembers the glee and joy he or she felt when they received their first letter from some credit card company offering them a card. It proved that they had indeed arrived.
[August 23, 2011]
Consumers are increasingly using their line of credit due to rising inflation and gas prices. This has been revealed by First Data Corp`s report called Spend Trend. Credit cards are being increasingly used to pay for daily necessities such as gas as well as other basic needs. There has been considerable rise in food and gas prices as well. This is a direct fallout of inflation, but income has not gone up substantially to keep up pace with the inflation.
[August 17, 2011]
While most consumers are rejoicing about the increase in the number of credit card offers today, there are a few who are skeptical about the number of rewards cards solicitations that arrive in their mailboxes on a daily basis. However, Bill Hardekoph, the chief executive of a leading financial website, has said that there is absolutely no cause for worry. The rewards credit cards are the latest trends by credit card lenders, both large and small, to increase the number of customers. Of the many rewards cards that are flooding the market today, here are a few that are worth a thought.
