Earlier this year the Federal Reserve cut federal funds rate to near zero per cent. Credit Cards rates should be good, too! Well... Not at all! CreditCards.com Industry Analyst Ted Rossman says they found some shocking evidence.
Several store credit cards are still charging extremely high credit rates. 29.99% was the highest we found!" He says there is reasoning behind the rates. "They are worried that people might not be able to pay them back --- especially in a time when lots of things are uncertain. Also they don't tend to be selective about credit ranking quality - so they're worried even more so that they might not be paid back."
The Federal Reserve cut the federal funds rate to almost nothing early this year...So why are credit card rates still right? Rossman says he has found that store cards, like jewelry and discount stores, are the highest, often reaching 29 per cent! Rossman explains that often store card holders are bigger risks of defaulting - especially during our current times. Bank cards are somewhat better. Says Rossman, "The rates on bank cards are usually lower. BUT - the rates are high enough that I still want bank card carriers to pay off the balance in full every month."
More than 2 in 5 Americans have bought a store credit card impulsively at the check out.