| Highest Credit Card Rates in 38 Years |
| Interest rates on credit cards have risen to their highest levels in decades as the Federal Reserve continues to tighten its monetary policy in an attempt to curb decades-high inflation. The credit card rate has increased to an average of 20.72 percent, according to Bankrate, which indicated that this is the highest figure since it started keeping track in September 1985. Meanwhile, LendingTree's data show that as of late September, the credit card interest rate stood at 24.45 percent, an all-time record for the firm. In comparison, the average credit card interest rate stood at 14.22 percent in 2018, according to NerdWallet. It was only 12.89 percent in 2017, the data show. At the same time, nationwide credit card debt rose $46 billion for the quarter, and $100 billion compared to the same time last year, according to the new Household Debt and Credit Report from the New York Fed. That 13 percent year-over-year increase is the largest jump in over 20 years. The Federal Reserve recently said that credit card debt in the United States is at all-time record levels. Meanwhile, credit card delinquencies are at an 11-year high, as measured using a four-quarter average, the Fed data showed. |
