Record High Retail Credit Card Interest Rates Approach 30%

The average interest rate on retail store credit cards has reached a new record high of 28.93%, up from 26.72% last year, according to Bankrate. Experts warn that carrying a balance on these high-rate cards can lead to significant financial strain, with purchases potentially costing more than double the original price. While retail credit cards can offer benefits like discounts and early access to sales, consumers should be cautious and consider alternatives if they plan to carry a balance. Deferred interest promotions can be particularly risky, as missed payments or failure to pay the balance in full can result in retroactive interest charges. It is advised to carefully evaluate the long-term financial impact before opening a retail credit card.