Thread: How US debt downgrade will affect credit card interest rates?

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?

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

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.

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.

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

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