Fed cuts interest rates but credit card APRs remain high

The Federal Reserve has cut interest rates, but average credit card rates remain high. Since the Fed's rate hikes began in March 2022, average credit card APRs rose from 16.34% to over 20%. Despite recent cuts, rates have only decreased slightly. Retail credit card rates have increased, with some reaching nearly 31%. Factors include new rules limiting late fees, which have led issuers to raise rates to manage risk. Delinquency rates are also rising, with 8.8% of balances transitioning to delinquency over the past year. Consumers are advised to avoid high-rate store credit cards, especially during the holiday season. Paying off balances in full each month can help avoid high interest and improve credit scores, leading to better loan terms in the future.