Posts Tagged "Rate Hikes"

Over the past two years, the Federal Reserve has raised interest rates substantially. Consequently, mastercard annual percentage rates have followed suit. Nearly all credit cards tie their interest rates to the prime rate, which has doubled to eightpercent from four% throughout the string of rate hikes that began in 2004. This has led to interest rates on credit cards rising by thirtypercent or additional. Since August of 2006, the Federal Reserve has kept interest rates steady, and several economists believe the next move might be a reduction in rates. However, the rate reductions have nevertheless to start, and credit card interest rates stay comparatively high. For those that carry balances on their credit cards, high interest rates have resulted in higher...