There are a few credit cards based on the prime rate. The best ones charge the prime rate plus 0% so that means you are paying the prime rate on your credit card. These cards came out when the prime rate was a lot higher like 5 to 8% but now it's only at 3.25%
Has anyone had their prime rate credit card upped lately with what's going on? I know no one is giving prime rate on cards anymore so the only way you have it is if you've had it grandfathered in on a card for years and have the highest credit scores. I wonder if they will start taking it away from those customers too though
Because 3.25% APR as your standard interest rate is almost like giving away money when you think about it.
But the funny thing is the credit card company is probably making the same percent of profit on those cards as what they did when the prime rate was higher. Since they are getting the money cheaper that is why they can loan it cheaper. The only thing that throws it off of course are the people with these cards now that aren't paying their bills...