Recent months have seen an expansion of credit, with offers from credit card companies beginning to flood consumers' mailboxes.
The federal credit card reform, which limited the ways companies can profit from borrowers with bad credit history, has made some credit card issuers focus on luring prime customers, according to The Associated Press. Furthermore, the regulations reportedly prohibited credit card companies from raising interest rates in the first year of an account. In response to this limitation, many companies decided to offer higher rates from the beginning.
The news source reports that the average interest rates on credit card offers during a recent week was 14.4 percent, which is up from 11.8 percent one year ago and 10.8 percent two years ago. If the Federal Reserve begins to raise rates during the year, this may result in credit card interest rates climbing even higher.
Consumers with bad credit history may want to be cautious about reading credit card terms before accepting an offer. They may also want to research the many lines of credit that tailor to those with less-than-stellar credit history, including car loans for people with bad credit.