Consumer Payment Card News

Rate Cut

With the prime rate sinking to 4.25%, some credit cards will dip lower, but don’t hold your breath. This week’s surprise rate cut by the Feds may have little effect on the bank credit card industry where fixed interest rates abound. Furthermore, credit card rates have been inching higher this year as card issuers grapple with rising losses. Historically, January is the month when card issuers tweak rates and other terms. It is possible any rate reductions due to the Fed action will be short-lived.

Average Credit Card Interest Rates
Dec 00: 16.57%
Jan 01: 16.49%
Feb 01: 16.31%
Mar 01: 16.16%
Apr 01: 15.91%
May 01: 15.83%
Jun 01: 15.43%
Jul 01: 15.02%
Aug 01: 14.98%
Sep 01: 14.81%
Oct 01: 14.48%
Nov 01: 14.41%
Dec 01: 14.32%
Jan 02: 14.33%
Feb 02: 14.38%
Mar 02: 14.42%
Apr 02: 14.54%
May 02: 14.60%
Jun 02: 14.62%
Jul 02: 14.65%
Aug 02: 14.70%
Sep 02: 14.71%
Oct 02: 14.74%

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