Image by Tommy from Digitalvision Vectors via Getty Images
In the lead-up to the Federal Reserve’s rate cuts, many major U.S. retailers and their banking partners decided to raise interest rates on their store-branded credit cards to all-time highs. This move was aimed at boosting profits during a period of slow sales.
Over 50 companies, including Big Lots, Gap, Petco, Burlington, Macy’s, and TJX Companies, opted to increase the APRs on their credit cards between September 2023 and September 2024. This data was compiled by Bankrate.com after analyzing the top 100 retailers in the country.
One notable example is Big Lots, which raised its APR by a significant 6 percentage points from 29.99% to 35.99%. Gap followed with a 5 percentage point increase across its various brand cards like Banana Republic and Old Navy. Petco also made a substantial jump with a 4.5 percentage point increase.
Other retailers such as Academy Sports and Michael’s also joined in this trend of raising APRs on store-branded credit cards during this period.
2024-11-22 07:05:03
Post originally published on www.cnbc.com