According to Bankrate Chief Financial Analyst Greg McBride, that would be the company’s highest average in 40 years and an improvement above the 19.6% recorded during the final week of 2022.
According to the report, many store credit cards already have rates higher than 26.72%, while some individual cards have rates higher than 30%.
The Federal Reserve raised interest rates in order to combat inflation, which is what has prompted these increases.
Meanwhile, according to the data, credit card delinquencies remain low because consumers have saved money and are experiencing the rewards of a robust labor market.
Meanwhile, according to the data, credit card delinquencies remain low because consumers have saved money and are experiencing the rewards of a robust labor market.
According to the study, credit card rates will remain high even if the economy contracts and the employment market deteriorates, since users will continue to make credit card payments for as long as they can.
According to a November report by the Federal Reserve Bank of New York’s Center for Microeconomic Data, even in the midst of record credit card debt, customers want to apply for more credit cards.
At the time, the organization highlighted that “the strength in credit card demand and availability aligned with the record growth in credit card balances over the previous year.”
