Credit Card Fees Keep Rising

Where is the consumer’s share of the Fed’s recent rate cut? Card issuers are raising fees and interest rates, even on good customers, to offset their losses.

Used to be, when the Fed cut rates, credit card issuers followed suit, resulting in lower monthly payments for cardholders. Though average credit card rates have fallen slightly as the Fed has cut interest rates, banks and retailers are trying to offset rising losses in their credit card operations by raising rates and fees across a broader swath of their existing customers.

Banks had already been tightening the screws on people with less-than-perfect credit in recent months. Now, even customers who pay their bills on time are finding it more expensive to carry a balance.

Even though interest rates that supposedly affect things like the rate you pay on your credit card interest are near all-time lows, have you seen rates creeping up on your credit card statements? We’d like to hear from you. Have you done anything about the rate-creep card companies are implementing? Have you called your credit card company and asked for a rate reduction? We’d like to hear your experiences. Use the comment link below and tell us about them. Your email address will never appear on this site to protect your privacy.