Over 50 major U.S. retailers, including Macy’s, Gap, and Big Lots, raised their store credit card interest rates to record highs before the Federal Reserve’s recent rate cuts. Big Lots made the steepest jump, increasing its annual percentage rate (APR) to 35.99%, the highest among the companies reviewed.
Experts warn consumers to be cautious as average store card APRs now surpass 30%, significantly higher than traditional credit cards. Retailers attribute the hikes to economic factors and industry trends, but analysts point to profit motives. Store cards, though less popular than before, remain lucrative, contributing significantly to some companies’ earnings.
The timing has drawn criticism from shoppers and advocates, who call the increases burdensome amid rising consumer debt and delinquencies not seen since 2011.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].
