While the recent CARD Act helped to cut down on some credit card fee abuses, it did nothing to help in the interest fees that credit card companies can initially charge. The result? Average interest rates now hovering at just under 15%.
“Rates are going up because card issuers know that once you get a card they can’t raise the rates, so they’re raising rates on the front end to ensure they get the revenue from that interest,” said Beverly Harzog, credit card expert at Credit.com.
APRs have climbed more than 20% over the past two years and hit an all-time high of an average 14.78% in mid-November, based on weekly data CreditCards.com collects from 100 of the nation’s top credit card issuers.
Those with poor credit scores are going to get hurt the most and will end up paying much higher interest rates. Read the whole article at CNN Money.