Lending Rate Increases at Major Banks to Impact Credit Card Rates
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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Published (Modified )