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Since most credit cards have a variable rate, as opposed to a locked-in fixed rate, there’s a direct connection to the Fed’s benchmark. As the federal funds rate rises, the prime rate does, as well, and your annual percentage rate could rise within just a billing cycle or two.
Average credit card rates are currently just over 17%, significantly higher than nearly every other consumer loan, and they may go as high as 19% by the end of the year — which would be an all-time high, according to Ted Rossman, a senior industry analyst at CreditCards.com.
“There’s a lot that we can’t control, such as high inflation and…