0% Credit Cards: The Solution to Rising Interest Rates

In a new article released by Credit Card Depot Inc (http://www.credit-card-depot.com), the company’s President and CEO explores the effect increases in the benchmark Prime Rate are having on consumers that hold variable interest rate credit cards.
The author writes, “If you haven’t checked your credit card statement lately, you should. Why? Because just about every time the Prime Rate increases, the interest rate you pay on a variable rate credit card rises accordingly. Over the past two years, the prime rate has skyrocketed to 8.00%, up 100% from January 2004, when this benchmark rate was a mere 4.00%. That means many credit cards that once charged rates around 10% are now charging close to 14% or more.

Fortunately, credit card issuers have continued to offer 0% interest rates on balance transfers and purchases. For many, these 0% APR offers represent the best way to cut down on mounting interest charges.”

This new credit card article goes on to explore the various advantages of 0% interest rates for purchases and balance transfers, including an analysis of how much consumers can save by taking advantage of 0% interest rates. For more information on 0% credit cards, see http://www.credit-card-depot.com/0apr.htm.

Additionally, as a consequence of the rising prime rate, most of the over 70 credit cards listed on Credit Card Depot have yet again raised their variable interest rates by a quarter point, bringing the average credit card interest rate to nearly 14%, with only a few credit cards still offering rates in the 10% to 13% range. Among those cards are the American Express® Blue credit card, which offers a 0% APR for up to 15 months and a fixed APR balance transfer rate. Aside from American Express, a few Citi and Chase credit cards have held their rates reasonably low, while maintaining 0% introductory rates for up to 1 year.

For more information on current credit card interest rates, as well as current 0% offers for purchases and balance transfers, visit http://www.credit-card-depot.com.