The interest rates being offered on credit cards have remained steady for weeks without undergoing any changes, despite being high. The average APR on credit cards remained at 14.97 percent for the second straight week. This is the highest average APR that has been reported since 2007. This year, right from the last week of August, the interest rates have either recorded new highs or equaled the highest calculated in the last couple of years.
Cabela’s credit card was the only one that brought about a change in the rate of interest. The higher end of the interest rate offered by this sports retailer on their credit cards was 18.21 percent which has now been changed to 18.23 percent. The lower end of the interest rate on this card remained unchanged at 9.99 percent. Since only the lower range of the interest rates on credit cards is used to calculate the national average, the average APR nationally remained unchanged despite the change in the top end APR of this card. K
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Credit card interest rates are affected by four different factors. These are credit rating, debt to income ratio, employment history and repayment history. Interest rates are normally connected with the US Prime Rate, the common national rate standard provided by the Federal Reserve Board or FRB. Your interest is being computed at the end of a billing statement period. This varies from one credit card holder to another. This will then be charged to you at the last day of your statement period. If you are good in managing credit, your credit card interest rates will be definitely lower.
Credit card companies look into your financial background when computing for interest rates. If you are in the habit of paying late, your interest rate might be increased. However, for some, they wonder why their banks increase rates on bills even if they are paying on time always. This may be because their credit scores fell in the past few months because of various reasons.
You are advised to take credit management seminars to know more about how debts and credit card interest rates work.
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The Reserve Bank of Australia has raised it’s interest rates, making Australia the first developed nation to reverse protective economic measures that were put in place as a result of the Global Financial Crisis.
The RBA raised the official cash rate to 3.25%, which for the average Australian with a $300,000 mortgage, will add an extra $40 in mortgage repayments per month.
Not all is negative about the announcement. The fact that the Reserve Bank has raised interest rates is a sign that they have a positive outlook for the Australian economy. In fact, as a result of the news the Australian dollar soared, with investors gaining confidence in the Australian market.
”The global economy is resuming growth,” RBA Governor Stevens said. ”With
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