Leading Credit Card Issuers Raise Lending Rates
Leading
Credit Card Issuers Raise Lending Rates
In step with the Federal Reserve, several leading credit card
issuers announced increases in their lending rates yesterday.
Bank of America, Citibank and U.S. Bancorp all raised their
base rates one-quarter point, to 8.00% from 7.75%. While other
credit card issuers did not make formal announcements, many
tie their lending rates to the moves of the Federal Reserve,
so borrowers should expect they will increase their rates as
well. For consumers and small business owners who carry variable-rate
credit cards, the move will mean another increase in their credit
card interest rates.
Federal
interest rates are now at their highest point in five years,
and, despite predictions that the Fed was just about done raising
rates, no such promise was made by Federal Reserve Chairman
Ben Bernanke. The Fed’s next meeting to discuss possible changes
in interest rates comes next month.
