Thursday, May 6th, 2010

I heard the federal government recently cut interest rates. Why hasn’t my credit card rate gone down?

credit card rates
Balding HD Rider asked:


I read the other day that the Federal Government recently cut the interest rates to banks. I called my credit card company and they told me my approx $65K of credit card debt is still at 29.44% and hasn’t dropped yet. When can I expect my credit card rate to drop? I am going to call my Congresswoman later on today but thought I would ask here first.

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5 Responses to “I heard the federal government recently cut interest rates. Why hasn’t my credit card rate gone down?”

Stacie L Says:
May 7th, 2010 at 1:27 am

Unless your card has a variable rate, you won’t see it drop. And even then, there is probably a chance that it won’t drop anyway. The lower rates you are hearing about are most likely for mortgages.

The Shadow Says:
May 9th, 2010 at 11:50 am

Your credit card company is not obligated to lower the rate. They can keep it the same. Even if they do, there is a time lag. It doesn’t happen immediately.

Also, credit card rates often depend on your credit rating and whether you are paying your bills on time. If your credit is poor and you are a high risk, you’re not going to get a low rate. If you’ve missed payments or have been late (even on non-credit card bills), your rate won’t go down.

If you’re paying 29.44%, that tells me that you either have serious credit problems or you’re being ripped off horribly. That’s not even close to normal!

Clutch Says:
May 10th, 2010 at 8:42 pm

The Fed cut interest rates on homes, not credit cards. So you should refinance your house and pay off the high-debt credit card. Even if they offer you one of those interest-only loans, it’s still a good deal. You can just refinance again in a couple years. Housing just keeps going up. I actually just refinanced again a few months ago so I could get a new Hummer. It’s badass, man!

newjerseyguy Says:
May 13th, 2010 at 6:50 pm

You are apparently under the delusion that lenders have to cut their rates whenever the Fed lowers its rates. That is NOT TRUE.

Cornporto Says:
May 13th, 2010 at 7:17 pm

Probably cuz you’re gay….

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