Why Aren't the CC Rates Going Down?

Discussion in 'Credit Talk' started by dlo64, Sep 21, 2001.

  1. dlo64

    dlo64 Well-Known Member

    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?
  2. Gregory

    Gregory Well-Known Member

    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.

  3. sam

    sam Well-Known Member

    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..
  4. keltexx

    keltexx Well-Known Member

    I notice that mine seem to change quarterly according to what they are doing w/ interest rates.
  5. creditwork

    creditwork Well-Known Member

    All of mine are down, plus I just got an 8.9% APR from MBNA till 1/02.


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