Retail credit cards maintain high interest rates despite Federal Reserve cuts

Many retail credit cards are still charging high interest rates, despite recent Federal Reserve cuts. A report from the Consumer Financial Protection Bureau shows that 19% of these cards have annual percentage rates (APRs) above 35%. In December 2024, the average APR for new cards from the top 100 retailers was 32.66%. There is no federal cap on interest rates, and many issuers operate in states with lenient laws. The CFPB also announced a new tool for consumers to compare credit card offers. They aim to address deceptive practices in credit card rewards programs. The agency faces challenges from incoming administration members who oppose its existence.