Credit card interest rates have reached an all-time high of 22.8%, driven by rising borrowing costs and increased profit margins for issuers. While credit card companies cite higher risk as justification, the percentage of subprime credit score holders with credit cards has remained stable. Consumers can avoid high interest by paying bills on time or transferring balances to cards with 0% introductory APR offers.
The average American's credit score has declined due to missed payments and increased debt, attributed to rising interest rates and living expenses. Consumers have relied heavily on credit cards, with high utilization and missed payments contributing to the drop. This decline may affect loan approvals and interest rates. Good credit management remains essential to maintain strong financial standing.
