Survey shows sky-high interest rates on store credit cards

U.S. Representative Anthony Weiner of New York’s Queens and Brooklyn has recently released a study which finds that many store credit cards carry interest rates far higher than those of conventional credit cards.

The study, which samples credit cards from 25 major New York City retailers, found that the cards carried an average interest rate of 28.83 percent, a recent press release reports. This figure is reportedly nearly nine points higher than the average bank credit card interest rate. It has also increased over time, as in 2008 the average store credit card interest rate was 21.71 percent. The highest interest rates were carried by Radio Shack, Staples and Best Buy.

The study also found that the national average Annual Percentage Rate (APR) on a credit card was 14.78 percent, whereas the average interest charged for a 24-month loan in New York was 10.71 percent.

Consumers with bad credit history may be advised to think carefully about where to obtain credit. It may not be wise to carry a debt on a credit card that charges a high interest rate.