Credit Card Interest Rate Cut Impact
http://creditfederal.com/article/articles/363/1/Credit-Card-Interest-Rate-Cut-Impact
By CreditFederal.com - A good or bad credit personal loan, auto and mortgage financing, and credit card resource.
Published on 09/25/2007
What impact does the recent federal interest rate cut have on credit cards?
Federal Interest Rate Cut Impact on Credit Card Rates
The lowered fed rate could affect the interest rate charged by your credit card company. If you have a variable rate credit card (call your issuer if you are not sure), you could see your interest rate go down slightly; although maybe not right away on the first or second billing statement. If your credit card issuer does pass the rate cut savings on to you, you could save hundreds of dollars if you have a very high balance.
Unfortunately, for many people the fed rate cut won't deliver substantial savings, and my be only about $2 per month on a $5,000 credit card balance.
The first fact for cardholders to remember, is that credit card companies can raise their interest rates at any time and very quickly, but are typically much slower (up to two or three billing cycles) when it comes to decreasing the interest rate they charge.
The second fact for cardholders to know, is that they can always negotiate a lower interest rate directly wth the card issuer. If your credit is good; or even 'fair', and if you haven't already called your issuer within the past 6 months to negotiate a better rate, call them and threaten to switch to another card.
Research our financial articles library for more information about credit card interest rates.
Unfortunately, for many people the fed rate cut won't deliver substantial savings, and my be only about $2 per month on a $5,000 credit card balance.
The first fact for cardholders to remember, is that credit card companies can raise their interest rates at any time and very quickly, but are typically much slower (up to two or three billing cycles) when it comes to decreasing the interest rate they charge.
The second fact for cardholders to know, is that they can always negotiate a lower interest rate directly wth the card issuer. If your credit is good; or even 'fair', and if you haven't already called your issuer within the past 6 months to negotiate a better rate, call them and threaten to switch to another card.
Research our financial articles library for more information about credit card interest rates.