Consumer Payment Card News

Rate Plateau

850 0

The Federal Open Market Committee yesterday decided to keep the lid on short-term interest rates for now. For credit card users this may mean the bottom on APRs as it appears the Fed will likely raise rates in the future to fight off inflation due to rising gas and food prices. If the Fed stops lowering rates than it is likely credit card issuers will switch back to variable interest rates to ride the future rate hikes. Consumers should be weighing carefully all card offers they receive in the mail or via the Internet to lock-in a good promotional rate or long-term rate, before rates head north again.

          PRIME RATE & CREDIT CARD RATES
                  Prime     Fixed   Variable
        Jun 07    8.25%    14.93%    16.65%
        Jul 07    8.25%    14.96%    16.69%
        Aug 07    8.25%    14.97%    16.70%
        Sep 07:   7.75%    14.98%    16.58%
        Oct 07:   7.75%    14.99%    16.39%
        Nov 07:   7.50%    15.00%    16.29%
        Dec 07:   7.25%    15.02%    16.02%
        Jan 08:   6.50%    14.97%    15.79%
        Feb 08:   6.00%    14.95%    15.64%
        Mar 08:   6.00%    14.93%    15.60%
        Apr 08:   5.25%    14.89%    15.35%
        May 08:   5.00%    14.88%    15.11%
        Jun 08:   5.00%    14.85%    15.08%
        Source: CardTrak (www.cardtrak.com)

Leave A Reply