Interest Rates On Credit Cards Hit Record High

Americans’ pocketbooks get squeezed by higher retail credit card interest rates
SAN FRANCISCO - FEBRUARY 25:  Visa credit cards are arranged on a desk February 25, 2008 in San Francisco, California. Visa Inc. is hoping that its initial public offering could raise up to $19 billion and becoming  the largest IPO in U.S. history.  (Photo Illustration by Justin Sullivan/Getty Images)

At a glance

  • A new study found that the average credit card interest rate for retail stores has risen to 26.72 percent – a record high.
  • General purpose credit cards now charge a 22.6 percent interest rate on average.
  • A total of 24 credit cards on the market charge 30 percent interest rates, including cards offered by Dick’s Sporting Goods, Burlington, and Wayfair.
  • “From a consumer perspective, 29.99 percent is an astronomical rate,” according to Ted Rossman, an industry analyst with “If you charged $1,000 and only made minimum payments at 29.99 percent, you would be in debt for 51 months and would end up paying a total of $775 in interest.”

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