These credit cards have had 'increasingly notable' high rates, analyst says. What to know before you shop
Publishing timestamp: 2023-10-23 18:24:39
Summary
The average annual percentage rate for retail credit cards has reached a record high of 28.93%, up from 26.72% last year. Store cards have seen a significant increase in interest rates. Experts warn that carrying a balance on retail credit cards can lead to financial strain, as the high interest rates can cause purchases to cost more than double the original price. Many Americans incurred credit card debt while holiday shopping last year, and a significant portion have yet to pay off their balances. Despite this, a majority of holiday shoppers still plan on using credit cards for their purchases. Experts advise caution when opening retail credit cards and recommend considering the long-term benefits and potential risks. Deferred interest promotions can be dangerous if payments are missed or the balance is not paid in full. It is important to carefully research and compare credit card options before making a decision.
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Keywords: personal finance, interest rates, breaking news: investing, investment strategy, breaking news: business, nerdwallet inc, personal loans, credit card debt, business news, retail industry,
Source: https://www.cnbc.com/2023/10/23/retail-credit-card-average-interest-rate-nears-30percent.html