Just received one of my credit card statements today. For those of us that have variable rates on our credit cards why aren't our rates going down? I checked the rate on my statement and the rate went up 1/2 percent! Are CC rates based on something else other that the prime rate?
Some issuers may have a "floor" - the lowest rate that they are willing to go to. Even if the prime rate keeps dropping, once the floor rate is hit, it will remain unchanged. As far as the 1/2 percent increase, I, personally, would call and find out why it went up when the prime keeps going down. Greg
citi takes it time to compute the new rate. Its currently at 6.75 as the prime factor... They do this of course to make more money from you..
