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Article: High Credit Card Rates May Not Drop from Federal Reserve's Cut.
- Article from:
- Knight Ridder/Tribune Business News
- Article date:
- November 12, 2001
CopyrightCOPYRIGHT 2001 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By Steve Blanchard, The Sun, Port Charlotte, Fla. Knight Ridder/Tribune Business News
Nov. 12--With the federal interest prime rate at an historic low of 2 percent, borrowers are seeing a better market in which to apply for loans.
However, that rate may or may not affect consumers' credit card rates which often range from 14 to 17 percent.
Individual credit card companies, whether it be Discover Card, Visa or Mastercard, do not set the card's interest rates. The bank, or issuer, is responsible for sitting those rates.
"Both Visa and Mastercard are associations, so they're actually owned by the banks," said Melissa Morey, Visa ...