Comments on: Say goodbye to ultra-low credit card rates http://asklizweston.com/2010/02/05/say-goodbye-to-ultra-low-credit-card-rates/ Personal Finance Columnist Thu, 29 Jul 2010 21:19:57 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Joshua Heckathorn http://asklizweston.com/2010/02/05/say-goodbye-to-ultra-low-credit-card-rates/comment-page-1/#comment-1195 Joshua Heckathorn Mon, 08 Feb 2010 15:12:24 +0000 http://asklizweston.com/?p=1775#comment-1195 Unless Congress decides to cap interest rates too, I wouldn't be surprised to see average rates in the US climb even higher than 18 percent. There will always be a large group of consumers who have had credit problems in the past that demand products to help them rebuild their credit histories over time. Discover may choose to not play in this market, but other companies will. We've already seen First Premier test products with rates north of 70%, and I know they have other products they're preparing to launch in the near future. It will be interesting to see how Orchard Bank responds as well in 2010. For those who wisely don't carry any credit card debt or students just beginning to establish credit histories, these trends provide all the more reason to keep living within your means and paying off your credit card balance in full every month. Yes, it's nice to have a low interest rate in case of an emergency, but that's what emergency funds are for. I've never become to fixated on what my credit cards' rates are. Unless Congress decides to cap interest rates too, I wouldn’t be surprised to see average rates in the US climb even higher than 18 percent.

There will always be a large group of consumers who have had credit problems in the past that demand products to help them rebuild their credit histories over time. Discover may choose to not play in this market, but other companies will.

We’ve already seen First Premier test products with rates north of 70%, and I know they have other products they’re preparing to launch in the near future. It will be interesting to see how Orchard Bank responds as well in 2010.

For those who wisely don’t carry any credit card debt or students just beginning to establish credit histories, these trends provide all the more reason to keep living within your means and paying off your credit card balance in full every month. Yes, it’s nice to have a low interest rate in case of an emergency, but that’s what emergency funds are for. I’ve never become to fixated on what my credit cards’ rates are.

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