Credit Card Interest Rates Spike At Some Retailers

They read like a Who’s Who of big business and they are peddling credit cards just in time for the holidays.

But if you don’t pay your credit card bill in full each month, you could be paying the bill well into the New Year.

Offering annual percentage interest rates as high as 34% and 35%,  Macy’s, TJ Maxx, Burlington, Michaels, Walgreen’s, Petco, The Gap, Nordstrom, J.C. Penny, Old Navy, Banana Republic, even Home Depot and Lowe’s, are all looking to get you signed up for their credit cards.

Those 34 and 35 percent interest rates are far higher than typical credit card interest rates right now.

Shop around and you can get credit cards with interest rates as low as 12% annual percentage rate.

The reason for the much higher rates?

Stores want to lock you into higher rates in case the Federal Reserve decides to lower interest rates in 2025.

stack of multicolored credit cards on black background

Photo from Alpha Media Portland OR