Credit card interest rates hit record high
Comes as the Fed raises rates to curb record inflation
Benjamin Wilson • November 10, 2022 1:05 p.m.
The price of carrying a credit card balance has never been higher.
The current rate of 19.04% is the highest on record, according to financial services firm Bankrate, which has tracked rates since 1985.
“This eclipses the previous all-time high of 19.00% from July 1991,” Senior Vice President Greg McBride said.
The increase comes as the Federal Reserve increases interest rates fight against record inflation.
New credit rate average is a big increase from earlier this year, NBC reported:
The new average is a substantial increase from the average rate of 16.3% for credit cards at the start of the year. According to Bankrate, if you carry a balance of $5,000 on a credit card — which is the current national average — making just the minimum payment each month at that rate would cost $5,517 in interest over 185 months, or about 15 years. At the current rate of 19.04%, you would pay $6,546.
While rates are high, prices for consumers increased less than expected last month, suggesting that inflation may begin to subside.