Another rate cut. Now, how do we get the cc companies to finally follow suit? As far as I can tell on my own accounts only Citibank has done automatic rate reductions for cardmembers. Anyone else???
I talked to FCNB in May. They said they would reduce their rates based on the Feds lower the rates, but so far no go. Good luck trying to get rate reductions when you are is sub-prime hell!
I just noticed on my First USA statement that they lowered my interest rate from 15.9% to 13.9%. I did not ask for this, it was done automatically.
DON'T HOLD YOUR BREATH...you will turn blue and pass out. Your rate may go the other direction like my wife's NEXT CARD account.
Well....I'm not trippin for now. I'll wait and see. I would balance transfer to Citibank but knowing those ding bats, I probably won't get a balance transfer offer. That means that I could obtain checks from them and pay First USA off....but that wouldn't be smart since the interest rate on my new Citi cards is 16.4% Gotta stick w/ 13.9% for now until they do otherwise.
New article from SmartMoney (excerpt) ----------------------------------- Credit cards: Experts say about 70 percent of all credit cards are variable-rate cards and most of those are linked to the Wall Street Journal prime rate, which usually falls the day after the Fed cuts rates. Because many variable-rate cards are re-priced each quarter, many card customers had to wait until April to enjoy lower rates stemming from the three interest-rate cuts in the first quarter of 2001. And they had to wait until July for the rate cuts in the second quarter to kick in. A new rate cut will mostly show up in October card bills. So these folks will have to be patient, yet again. Other credit card customers are more fortunate. Their variable cards are re-priced monthly. These customers will see their rates drop very quickly by the same amount the Fed decreased rates. Still, with all the rate cuts this year, some card customers have hit the minimum annual percentage rates allowed in their cardholder agreements. The interest rates on their cards won't drop any lower. Some variable rate cards come with minimum APRs or floors and some do not. Be sure to check your cardholder agreement. Best move now: Consider transferring a balance to a low, variable-rate credit card. A variable-rate card that beats the rates on any other card in your wallet will be an even better deal should the Fed cut rates again. The average rate on a standard variable-rate card was 14.69 percent on Aug. 15, while the average rate on a standard fixed-rate card was 14.61 percent. Compare credit cards using Bankrate's credit card search engine. ---------------------------------------
