With the Federal Reserve cutting interest rates today (down another 50 basis points) -- for the second time in three weeks (link here) -- I think it's instructive to trot out a story that I pointed to earlier this month. Today's rate cut will bring the prime rate down to 4%. At some point, though, these rate cuts could stop having an impact on your credit-card interest rates. That's because many cards have interest rate floors.
If you missed it the first time around, here is the story (dated October 8, 2008) I recently did on interest rate floors (link here).
Related Articles:
Wednesday, October 29, 2008
Does Your Credit Card Have an Interest Rate Floor? (Reprise)
Subscribe to: Post Comments (Atom)
6 comments:
I have seen no change in my interest rates. I have a feeling these savings are not being passed onto me....
My Citibank and Nordstrom cards continue to move lower. I haven't paid attention to the rest of my cards.
We're now at 4% on prime. My nordstrom card can go no lower. It's floor is 4%.
I called my Chase CC and explained that I just don't use them due to the high interest they charged, They looked at my account and immediately lowered it. Sometimes all you have to do is ask...
Nightshft, I totally agree.
Unfortunately, most of my APRs are already very low (see my 4% Nordstrom card). My Citi APR is now 6%. Hell, one of my highest APRs is on my Chase card, which stands at 12.99%. I call every few months just for giggles. The robots, er, customer service reps always say the same thing: can't do anything for you this time around.
Since I pay my bills in full, APRs are meaningless. But I still want to have APRs that reflect my creditworthiness.
Just a side note...AMEX has canceled One and Optima....maybe a sign that they are moving to Charge Card only company soon.
Thanks, D. We shall see how it shakes out for Amex. I think the company would be more comfortable as a charge card company, but so long as the credit card biz is profitable, I imagine American Express will remain in the biz.
Post a Comment