NEW YORK—While short-term benchmark interest rates are close to zero and homebuyers paying less than ever for a mortgage, credit-card borrowers are not as lucky.
Two new reports, including one from the Federal Reserve, have found some retail store cards are charging APRs of nearly 30%.
The Fed study found the average APR for revolving credit products jumped to 16.43% for August from an average of 15.78% in the second quarter, reported Money in its analysis.
Money added that a 2018 report from the Consumer Financial Protection Bureau found retail store cards charge nearly a third more, on average, than general-purpose cards.
CreditCards.com reported, meanwhile, that its survey found more than 43% of people have impulsively applied for a retail store card at checkout.
“That phenomenon may change this holiday season, when much of the shopping is expected to be online,” Scripps National said.