INDIANAPOLIS — Credit cards are known for high interest rates and Federal Reserve rate increases that keep happening are making them even more expensive.
Some cards can carry a 30% annual percentage rate.
Kroger, Macy's and Wayfair are some of the retailers with a credit card topping 30% APR, and that list of stores will probably grow, since more rate hikes are likely on the horizon.
Not everyone is paying this rate. It's reserved for the riskiest borrowers and those with poor credit scores.
While experts say 30% is an unofficial ceiling banks try to avoid, they may go higher anyway in this market.
"If a bank doesn't raise the rate that it charges when the Fed raises its rates, that means that the bank is going to make less money and less profit off of that card," said Lending Tree's Matthew Schulz, "And that's not something that banks do very lightly."
So, what can you do? First call and ask for a lower rate.
If they don't move, consider a 0% balance-transfer card, or maybe even personal loan with a lower rate to pay off that card.