Fed Drops Rates - Time To Check Your Credit Card Rates

Latest Federal Reserve Rate Means It Is Time to Check Your
Credit Card Rate

The Federal Reserve is actively working to cut interest
rates. Today's .50 point rate cut is the second cut in ten
days, dropping the rate by 1.25 points. Rates have dropped
2.25 points since September. It is now time for consumers to
pay attention to their interest rate on their monthly credit
card bill.

"Cardholders should not assume that their credit card rates
are dropping just because the Fed is aggressively lowering
interest rates. The issuers have the freedom to adjust their
own rates," says Bill Hardekopf, CEO of LowCards.com. "The
rates for some of the more popular cards have actually
increased. It is very important to make sure you are getting
the benefit of these rate decreases. If not, it is time to
shop around for a credit card with a lower rate."

Despite a cut of 2.25 points in the federal fund rate since
September, some of the more popular cards have barely budged
with their variable rates. The rate for Blue from American
Express was 12.24% in September, dropped to 11.74% in
October, and is currently back up to 12.24%. Chase Freedom
actually increased its rate from 14.24% in September to
17.24% in January.

By comparison, other cards are dropping their rates. Citi
Platinum Select dropped their rate from 10.24% in September
to 8.49% in January.

"These rate decreases are good news for consumers. You just
have to look out for yourself to make sure you are taking
full advantage of these rate decreases. Be sure to look
closely at the Terms and Conditions of your credit card,"
says Hardekopf.