Credit Card Interest Rates Going Down

Since the Fed lowered rates on March 22nd, a number of credit card companies have passed the savings onto consumers.  Among the credit card issuers lowering interest rates are Citi and Chase, both of which have reduced their lowest available rates by 3/4%.  Additionally, many cards issued by these companies are still offering 0% interest rates for 1 year on purchases, balance transfers or both.

At the time of writing, other issuers, including Discover and Capital One, have not reduced rates, as these companies do not tie their offers to the ever fluctuating prime rate.  However, Discover, in particular, continues to offer low long term interest rates of 10.99%.

Overall, the recent reductions of the Federal Reserve’s benchmark interest rate has been good for consumers, as average interest rates on many offers has dropped from about 14% to 11%.  Additionally, there are a number of companies offering credit cards with interest rates as low as 8%.

Unfortunately, very few companies are offering fixed rate credit cards.  Instead, they are offering variable rate credit cards with rates that increase (or decrease) every time rates change.  Of course, the best way to avoid rate increases is to lock in a 0% APR with a credit card that offers a 0% APR on purchases and balance transfers for a year.