Comparing U.S. Credit Cards Rates to Those Abroad
| June 8, 2010 |
When it comes to credit cards around the world have you ever wondered how your interest rates compare? If not you will probably be surprised to learn that on many accounts cardholders in the U.S. are still considered as having the lowest rates even with all the changes that happened over the last year.
When looking at the country that has the most comparable rates to the United States, the closest would be the United Kingdom. For the most part, U.K credit cards typically range anywhere between 17.8% and that of 19%. When it comes to the higher end of interest rates many consumers will find that the rates are much higher depending on the offer but are generally between 34% and 46%. When looking at other countries offer credit cards here are the average rates that many cardholders are seeing:
- Canada - 19%
- United States. - 16%
- United Kingdom - 17%
- Australia - 17%
While there are when differences that set us apart from the international community, when it comes to why cardholders in the United States are able to enjoy lower interest rates compared to the international community it is simply because of our reliance of plastic in years past. For the most part American cardholders tend to make more purchases that others around the globe and in many cases only pay the minimum balance required. Because of this, issuers are able to offer much lower rates and still make the profits on both interest and fees (such as triple digit annual fees).
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