Consumer Credit Card Interest Rates Hit a Four-Year... - Products News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Products » Consumer Credit Card Interest Rates Hit a Four-Year High

Consumer Credit Card Interest Rates Hit a Four-Year High

Consumer Credit Card Interest Rates Hit a Four-Year High
The content is accurate at the time of publication and is subject to change.

The average APR on credit card accounts in the United States has climbed to 15.14%, up from 14.75% only six months ago. In fact, cardholders with a poor credit rating are subjected to an even higher rate – 24.96% on average.

Michael Germanovsky, personal finance guru at Credit-Land.com, cautions that “High rates hurt your wallet and your credit score. FICO`s scoring algorithm detects if a consumer is making poor credit decisions-that is, getting bad credit terms, such as paying a high interest rate.”

The reason why so many issuers are choosing to up the standard rates is because they are attempting to recoup some of the revenue losses they felt over the last year as a result of the recent Federal law which restricted a lender`s ability to apply penalty rates to the accounts of consumers that are late making their payments.

Some credit card companies such as HSBC, U.S. Bank and Wells Fargo have opted to refrain from enforcing the penalty rates altogether. However, out of the 69% of issuers that still do dole out penalties, all of them have jacked up their rates, often in addition to increased late fees.

Despite how confusing it all sounds, the onus is on the credit card companies to make it comprehensible to consumers. In December the Consumer Financial Protection Bureau began working on a new standardized credit card agreement form that would outline all of the potentially tricky details in simple, easy-to-understand terms for potential cardholders affording them greater ease in comparing offers.

Knowledge is power, so if consumers can gain a more thorough understanding of the terms of the card they wish to apply for, they will be in a better position to avoid paying unnecessary fees and excessive interest charges.

“Aside from switching to a promotional credit card with low interest rate, consumers should consider improving their credit history profile, by pay bills on time and monitoring their credit reports for any negative items. You will need at list 3 credit accounts in good standing and zero negative reports from things like student loans, taxes, and medical debt, as these hurt your FICO score the most. Your interest rate depends on your FICO score, so research it well, and take steps towards improving it,” advises Germanovsky.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

With The Chase App Cardholders Can Send Gift Cards
With The Chase App Cardholders Can Send Gift Cards

Posted: April 19, 2019

Have you ever wished you could just send a gift card to someone easily and quickly? If so you might want to check out the new feature Chase has added to their app letting users do just that. With the Chase App cardholders can not only… Continue reading

Getting 100,000 Bonus Points with the Marriott Bonvoy American Express Credit Card
Getting 100,000 Bonus Points with the Marriott Bonvoy American Express Credit Card

Posted: April 17, 2019

If you have the Marriott Bonvoy American Express credit card you might want to head over to the website to register your card so you can pick up an extra 100,000 bonus during the year. How does it work? It is fairly simple. Continue reading

Refer a Friend for the Chase Sapphire Preferred Credit Card and get 15,000 Points
Refer a Friend for the Chase Sapphire Preferred Credit Card and get 15,000 Points

Posted: April 15, 2019

People with the Chase Sapphire Preferred Credit Card can now get 15,000 bonus points if they refer a friend – and the friend is approved. What’s even better is that they can make up to five referrals which would let them bank an extra… Continue reading

Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Introducing the New Citi Rewards+ Card - the only credit card that automatically rounds up to the nearest 10 points on every purchase - with no cap
For Excellent, Good Credit
Enjoy 70,000 bonus miles after spending $5,000 on purchases in the first 90 days
For Good/Excellent Credit
See Rates & Fees
Perfect credit not required for approval; we may approve you when others won’t
For Fair/Bad Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!