Credit Card interest rates

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With interest at an all time low if not even negative, why haven’t credit card rates changed? It seems criminal it’s a fixed rate. I’m going to call my banks (USAA and BoA) and request a rate reduction. Has anyone else inquired about credit card interest rates and try to get them lowered?
 
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We don't worry about credit card interest rates because we never carry a balance; paid off each month. That said, it does seem like with Federal Reserve interest rates so low, credit card interest should be dropping. I think the banks use CC interest rates as a "cash cow."

TJ
 
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You should call your banks and ask for a lower rate. Credit Card rates don’t necessarily move in lockstep with what what the fed calls the rate because they are referring to (in most cases) what is the federal fund rate. This is what banks pay to borrow from each other.

Credit Card rates are a function of a number of factors which include your credit score, your credit history, how much debt you carry and in some cases your banking relationship. This all gets fed into complex credit models that determine the product/credit line you get and the rate you pay on revolving balances. These models get updated frequently (monthly usually) and are used for customer relationship management so when you call you might be pleasantly surprised.

I hope @Neal has a positive outcome with calling those banks and getting better rates. Don’t be afraid to shop around as banks want good relationships, and @Neal being a business owner is an important segment to banks. @TJ&LadyDi is also golden since you pay your debt off each month which is much lower risk for banks and also important.

If you followed the last earnings reports, banks set aside a large number in billions as they expect some number Of customers may stop paying their debt for economic reasons. Customers that ARE paying is what they all want these days.

Good Luck!
 
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I checked USAA and BoA and I was surprised to see the rates are in fact auto reduced as they are prime + value. Now to check my biz AMEX and see if they too did the same. My USAA is down to 8.9, BoA is 9.9.
 
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Biz AMEX is shocking, didn't realize! I'm closing it today and moving to another company.

Edit: maybe not, business CC's are a different beast.
 
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They can be but AMEX is a unusual animal in the world of CC. They charge the most in terms of merchant fees to process an AMEX transactions etc and many retailers have dropped them as a result. Added to that is a business account has a whole another set of credit risk factors that get applied because businesses as they are don't have a fico credit score as an individual does. They use other sources but it gets messy quickly because its not the same e.g. a corporate entity vs a natural person. You are wise to shop around for your business credit needs.
 
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We are like TJ. We pay off at the end of the month. I've never done it any other way since we have had credit cards.
 
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I checked USAA and BoA and I was surprised to see the rates are in fact auto reduced as they are prime + value. Now to check my biz AMEX and see if they too did the same. My USAA is down to 8.9, BoA is 9.9.
I’ve had a locked in rate at BofA at 6.9% for 20+ years. Never carry a balance but nice to know I could! 😊
 
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