Study to Shed Light on Rising Interest Rates
| August 18, 2009 |
For credit cardholders and credit card issuers alike, the first half of 2009 has been filled with unforgettable changes that will forever shape how borrowing is perceived. As we all know, when the CARD Act was signed into law earlier this year many cardholders have since found notices of change in their mailboxes. For many credit cardholders, the notice stated the same thing, an increase in the interest rate that was currently being applied with each purchase, balance transfer, or cash advance. Now according to Yahoo Finance, a study performed by one consumer advocacy group looks to show cardholders how credit card issuers raised rates to increase profit.
Releasing a report known as "The Pew Safe Credit Cards Project", Pew Charitable Trust states that when it comes to advertising credit card issuers have changed the rates that consumer see. In December of 2008, the average interest rate shown to potential cardholders was 9.99% where as in July 2009 it was 11.99%. With advertising rates increasing being just the beginning, the advocacy group also looks to show how raising money became difficult and expensive for issuers resulting with the costs passed on to consumers in the form of higher rates.
So where can you see the report? For those who want to see the actually report, the full results are slated to be published next month. Although every survey has a sampling error, I think that this report will be very interesting. With multiple issuers surveyed, it could give a little more insight on more issuers than those you hear in the news headlines every other day.
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