What could happen to credit card rates now that inflation is holding steady?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms.
TL;DR
- Average credit card APRs are over 22%, and recent inflation data suggests rates may not decrease soon.
- August's Consumer Price Index rose 3.4% annually, matching July and exceeding economists' expectations.
- Inflation remaining above the Fed's 2% target could lead to an interest rate hike on September 16th.
- A Fed rate hike typically causes variable credit card APRs to rise.
- Strategies to lower credit card rates include asking issuers for a lower rate, hardship programs, 0% balance transfers, debt consolidation loans, and debt management plans.
- Borrowers should not expect significantly cheaper credit card debt in the immediate future.
- Inflationary pressures and uncertainty mean conditions for significant rate cuts have not yet materialized.