Lending Rate Increases at Major Banks to Impact Credit Card Rates
Ever wonder why the media is so infatuated with Federal Reserve Chairman Alan Greenspan? It’s because his pronouncements affect the interest rates that millions of Americans pay on their debt, including credit card debt. The quarter-point increase Greenspan announced this week prompted several major banks, including Citi, HSBC, U.S. Bank and Wachovia to increase their base lending rates from 6.50% to 6.75%. Because most credit cards offer variable rates, most cardholders will see that quarter-point increase on the interest rate they pay on their credit card balances. If you’re rate is 11.49% today, expect it to jump to 11.75% before the week is out.
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