Credit Card Interest Rates Respond to Rate Hikes

Credit Card Resource suggests that its customers review their credit card agreements in response to the Fed’s decision last Tuesday to increase the interest rate one quarter point.

(PRWEB) December 22, 2005 -- Credit Card Resource suggests that its customers review their credit card agreements in response to the Fed’s decision last Tuesday to increase the interest rate one quarter point. Increases such as this affect the Prime Rate, which could spell increased interest rates and expenses for consumers that currently use credit cards with variable rate structures. Many issuing banks use the Prime Rate plus a tiered rating system based on an applicant’s credit score as the standard for determining how much interest customers pay on their accounts. These changes will likely show up on consumer’s statements as early as their next billing cycle.

“It’s important to review your agreement and pay attention to your credit card statements when rate changes like this occur,” said Aaron Blumenthal of Credit Card Resource. “As it [Prime Rate increases, those hardest hit by such an increase are usually the consumers with poor credit because they aren’t aware that these decisions affect them directly.”

More information about credit card rates can be found at http://www.creditcardresource.net.




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