New year, new credit card? With interest rates averaging near record highs at more than 15%, it’s going to cost you.
A report Wednesday from CreditCards.com has rates averaging 15.14% after peaking at 15.22% in mid-December. And a survey from the card-tracker site shows late payment penalties are becoming more expensive.
Card holders with bad credit are shelling out an average 24.96% APR, while rates for reward, cash back, airline and student cards are on a six-month upward trend.
Many issuers may be boosting standard rates to try to compensate for the effects of a recent law that limited when penalty rates could be applied to late-paying consumers.