According to Bankrate Chief Financial Analyst Greg McBride, that would be the highest average the company has seen in 40 years and an increase over the 19.6% recorded during the last week of 2022.
As they averaged 26.72% last year, many shop credit cards already have rates greater than that, and some individual cards have rates above 30%, according to the research.
The Federal Reserve increased interest rates in an effort to curb inflation, which is what has caused these hikes.
Meanwhile, the research stated that credit card delinquencies are still low because consumers have saved money and are reaping the benefits of a healthy employment market.
Meanwhile, the research stated that credit card delinquencies are still low because consumers have saved money and are reaping the benefits of a healthy employment market.
According to the research, credit card rates are expected to stay high even if the economy shrinks and the job environment worsens because customers will continue making credit card payments for as long as they can.
Even amid a period of record credit card debt, consumers want to apply for additional credit cards, according to a November analysis from the Federal Reserve Bank of New York’s Center for Microeconomic Data.
The group noted at the time that “the strength in credit card demand and availability corresponded with the record rise in credit card balances over the preceding year.”
