Despite the Federal Reserve’s recent interest rate cuts made to help jump start the faltering economy and fend off a recession, those falling rates may not necessarily include lower APR’s on your credit cards. So don’t automatically assume that your credit card’s interest rate will start dropping when the Federal Reserve starts cutting their rates.
As Bill Hardekopf, the CEO of LowCards.com said, “Just because we are in an environment where rate decreases are taking place, that doesn’t necessarily mean every card will decrease its interest rate.”
Consumer advocates are particularly upset by these card issuer practices, viewing this as a time during which all financial institutions should be playing their part to help improve the economy. But these rate cuts have brought very little relief for consumers credit card bills.
“Consumers are sick and tired of credit card company “gotchas” that result in unfair penalties and interest rates that climb through the roof,” said Jeannine Kenney of Consumers Union. “These practices have always been abusive, but now consumers are being hurt even more at a time when the economy is worsening and they can least afford it.” So keep an eye on those credit card statements and make sure your ongoing interest rates aren’t creeping up.
Also, make sure to read all of those disclosure notices sent to you by your card issuer. It might seem tedious and difficult to sift through all of those harmless looking disclosure notices, especially since most of them, at first glance, appear to be junk mail. You might have to sift through pre-screened credit card solicitations as well, but make sure that you take the time to read through all of those disclosure notices.
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