It’s easy to be lured into a signing up for a credit card that has a zero percent interest rate for an introductory period. But after the honeymoon is over, companies nail the consumer with ever-increasing rates.
According to CardHub’s Landscape Report, the average credit card interest rate in the United States now sits at 21 percent, a two percent increase from last year’s figures.
“Credit card interest rates were higher across the board during the first three months of 2014 relative to the same period last year – rising an average of 2.12 percent on a year-over-year basis,” the report stated.
Cash advance fees are on the rise, jumping a startling 10 percent in the first quarter of 2014. Cards offering initial rewards bonuses, whether it is cash or points, are also growing in popularity, experiencing a 10 percent growth.
“I think credit card companies are essentially realizing that consumers are more focused on introductory rates,” CardHub CEO Odysseas Papadimitriou was quoted as saying. “So they are not paying much attention to what happens after the introductory rates.”
*Source: New York Post