Why Credit Card Rates Have Not Dropped
May 30, 2009 // Posted by: Insider // Category: Credit Cards, Interest Rates
Do you often wonder why credit card service providers have not decreased their rates, yet there is an ongoing financial crunch? This issue is even more mind boggling considering that the official Reserve Bank’s cash rates have fallen to the lowest point of 3% in fifty years. Mortgage interest rates have also decreased significantly and yet credit card rates have not changed even one bit.
The situation is not likely to get any better in the near future. The argument passed by many economists as to why rates on credit cards have remained steadily high is that high credit cost coupled with the financial crisis monster are keeping credit card rates up. Some people even argue that the low mortgages are being subsidized using credit card rates.
Credit card users are therefore being advised to be careful how they use their credit cards and pay their credit card bills on time.