How US debt downgrade will affect credit card interest rates?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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really_scared
 
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How US debt downgrade will affect credit card interest rates?

Postby really_scared » Sat Aug 06, 2011 12:28 am

Hey new member here and really scared about the S&P downgrade and its effect on credit card interest rates. I have over $28k between 3 cards. These were from unexpected bills (medical + $4.5k car repair bill) and I am paying them down slowly but surely though with this debt downgrade, I'm afraid my APRs will skyrocket and cause my debt to snowball. Feedback please?


DavidNY
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Postby DavidNY » Sat Aug 06, 2011 2:46 pm

Unless Moody's or Fitch also downgrades I don't think you'll see any interest hikes.

pseymore
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Postby pseymore » Sat Aug 06, 2011 8:07 pm

Like I was just talking about I am planning on financing a big furniture purchase and man I just hope this debt downgrade doesn't mean the 0% credit card offers will go away. There is no way I can afford or want to pay for a couple thousand in furniture with a normal interest rate. No way.

ooxs
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Postby ooxs » Thu Aug 18, 2011 5:16 pm

Uncle Sam is lending money to the banks at almost 0% for the next two years, i don't see a significant rate hike for at least two years.

Iroquois
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Rates are more likely to decrease than increase

Postby Iroquois » Sat Aug 20, 2011 9:29 am

The SP move was political drama not at all echoed by Fitch or Moody's and certainly not at all impacting interst rates. US rates have fallen as dollars move into government securities as a safe haven for foreign money ( we are still the primary reserve currency) and flight from equities.

With loan losses declining on cards, the Fed pledging to keep interest rates low, and consumer credit declining, there will be both market pressure and political pressure to lower rates.

You are already seeing some of this with more and more zero interest rate offers to open an account or transfer a balance.

Rates are likely to go up only in individual circumstances based on individual, but overall move down from my perspective

ooxs
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Postby ooxs » Sat Aug 20, 2011 2:37 pm

I agree, i am looking at mortgage rates, i almost want to refi but i already 15 years at 4%.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Thu Aug 25, 2011 2:14 am

Recently a few AmEx cards hiked their fees slightly but aside from that, no significant changes thus far. As mentioned with the fed committing to keeping rates so low, I doubt banks will be in a hurry to raise rates on credit cards or anything else for now.
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