• Contact
  • Privacy Policy
  • Advertise With Us
  • Login
  • Register
Your Trading Edge Magazine
Advertisement
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
Your Trading Edge Magazine
No Result
View All Result

Credit card interest rates are ‘the highest they’ve ever been’: Analyst [Video]

July 3, 2022
in Finance
Reading Time: 4 mins read
A A
0
Credit card interest rates are ‘the highest they’ve ever been’: Analyst [Video]
0
SHARES
22
VIEWS
ShareShareShareShareShare

Average annual percentage rates (APR) for new credit cards have reached a record high. The average bank card borrowing rate in America in June rose to around 20%, revealing a steep increase of about 6% compared to the pre-pandemic average credit card rate of 14.87% in 2019.

“Credit card interest rates are basically the highest they’ve ever been. I’ve been watching credit card rates on a monthly basis for more than a decade now. And it’s the highest that they’ve been since I’ve been tracking them,” Matt Schulz, LendingTree (TREE) chief credit analyst, told Yahoo Finance Live (video above).

Schulz predicts that consumer borrowing costs could continue to rise significantly. “The troubling truth is that we’re nowhere near where the top is going to be,” he said.

The increases are the result of 3 interest rate hikes carried out by the Federal Reserve in recent months to combat surging inflation. In June, the Fed increased rates by 75 basis points in mid-June, an aggressive move that put the federal funds rate at 1.75%, up from zero in March 2020.

America’s credit card balance rose to $840 billion in the first three months of 2022, according to data released by the Federal Reserve Bank of New York on May 10. The increase is in line with the steady upward national credit card debt trend since 1999. Schulz pointed out that this is not likely to change as debt growth is expected to continue even as money becomes more expensive.

“What we’re seeing right now is actually card debt increasing,” he said. “The only time that we’ve seen real meaningful decreases in credit card debt since the Fed began tracking credit card debt back in the ‘60s is in times of great economic crisis, like the Great Recession, like the very beginning of the pandemic.”

Schulz offered some advice for consumers feeling the pinch, suggesting borrowers negotiate with their lenders for lower interest rates and take advantage of balance transfers.

Average interest rate for current credit card accounts

Source: Lending Tree, from the Federal Reserve

In an April Lending Tree poll, about 70% of people who asked for a lower interest rate on their credit cards in the past year were successful, Schulz said. “And it indicates that it’s not just people with 800 credit scores who are getting their way,” he added.

Although the odds of successfully requesting lower APR from lenders has dipped in recent months compared to prior years, it’s worth the effort. “The average reduction that people reported was seven percentage points. That’s a really significant decrease. So it’s absolutely worth your time.”

Rebecca Chen is a writer and reporter at Yahoo Finance. Follow her on Twitter @RebeccaChenP

Click here for the latest personal finance news to help you with investing, paying off debt, buying a home, retirement, and more

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for Apple or Android

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube


Credit: Source link

ShareTweetSendPinShare
Previous Post

Is Bitcoin (BTC) headed to $10K? Crypto bull Lark Davis gives his opinion

Next Post

How mRNA tech blew open the door of UPS’s cold chain logistics business

Related Posts

Gig companies are now obsessed with profits—not just revenue growth, says analyst.
Finance

Gig companies are now obsessed with profits—not just revenue growth, says analyst.

February 3, 2023
15
White House top economic advisor Brian Deese to depart mid-February
Finance

White House top economic advisor Brian Deese to depart mid-February

February 3, 2023
25
Americans prefer to cling to cash after shaken by stock market volatility
Finance

Americans prefer to cling to cash after shaken by stock market volatility

February 3, 2023
24
Tech stocks extend post-Fed rally, Dow futures lag
Finance

Tech stocks extend post-Fed rally, Dow futures lag

February 2, 2023
10
2 reasons Meta stock is exploding 20% after a whopper earnings miss
Finance

2 reasons Meta stock is exploding 20% after a whopper earnings miss

February 2, 2023
23
Next Post
How mRNA tech blew open the door of UPS’s cold chain logistics business

How mRNA tech blew open the door of UPS's cold chain logistics business

Recommended

Arbitrum price dips further as whales dispose ARB tokens in millions

Arbitrum price dips further as whales dispose ARB tokens in millions

September 12, 2023
5
Bitcoin Price Analysis: Pressured After 26429 Failure – 10 September 2023

Bitcoin Price Analysis: Pressured After 26429 Failure – 10 September 2023

September 10, 2023
6
Binance And Ceffu Respond To SEC Allegations

Binance And Ceffu Respond To SEC Allegations

September 20, 2023
4
The Top 10 Meme Coins To Buy In Early 2023

The Top 10 Meme Coins To Buy In 2023

September 7, 2023
5
Unveiling the Dynamics of the Asset Management System Market: Trends, Benefits, and Future Prospects 

Unveiling the Dynamics of the Asset Management System Market: Trends, Benefits, and Future Prospects 

September 1, 2023
13
Your Trading Edge Magazine

This is an online news portal that aims to share the latest news about trade, finance, crypto and much more. Feel free to get in touch with us!

What’s New Here!

  • Russia’s Central Bank Paves Way for Nationwide Adoption of CBDC by 2025
  • Analysts Split – Rally to $1.80 or Dip to $0.41?
  • ATOM Surges 13% in 1 week; Can QUBE & ATOM Be September’s Top Earners?

Subscribe Now

Loading
  • Contact
  • Privacy Policy
  • Advertise With Us

© 2021 - ytemagazine.com - All rights reserved!

No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe

© 2021 - ytemagazine.com - All rights reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?