Falling Fed rates make variable rate cards better

If you have a variable-rate credit card, you may have already seen your rates fall in the last couple of weeks. According to KRIS-TV in Corpus Christi TX, the average interest rate on variable-rate cards has fallen to 13% in late January, from 14% in late September. The full positive effect from the Fed rate cuts may take a few months to be reflected in your variable rate. According to Jessica Austin of CardRatings.com, about 90% of all cards issued today have variable rates that typically move up and down in response to the Prime Rate. According to CardRatings, over the coming weeks and months, interest rates will fall .50% on variable rate credit cards.