I thought it was interesting that as mortgage rates linger at all-time lows credit card interest rates have been steadily rising and are now at 9-year highs. This article in the WSJ this morning explains why. Here are a couple of the highlights:
*”New credit-card rules that took effect Sunday limit banks’ ability to charge penalty fees. They come on top of rule changes earlier this year restricting issuers’ ability to adjust rates on the fly. Issuers responded by pushing card rates to their highest level in nine years.”
*”In the second quarter, the average interest rate on existing cards reached 14.7%, up from 13.1% a year earlier…”
*”More increases are looming as card issuers respond to the new penalty-fee limits…”