Fed's Rate Cuts Bring No Relief For Consumers' Credit Card Bills

Fed's Rate Cuts Bring No Relief For Consumers' Credit Card Bills | By Nancy Trejos | Washington Post Staff Writer | Monday, February 11, 2008; Page A01

The Federal Reserve's dramatic rate cuts were expected to make it cheaper for consumers to use credit cards. But credit card interest rates remain high and in many cases have even climbed.

Bruised by a rise in foreclosures, banks have been reluctant to lower rates for cardholders who have missed payments or had their credit scores slip, analysts and industry watchdogs said. Yet even some cardholders who pay on time have not benefited from the Federal Reserve's recent actions, as banks raise rates and fees to make up for losses in their mortgage departments, analysts said. ...