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Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. SHARE: January 03, 2017 Mike Cetera Bankrate logo

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At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo

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At Bankrate, we have a mission to demystify the credit cards industry — regardless or where you are in your journey — and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to: Meet you wherever you are in your credit card journey to guide your information search and help you understand your options. Consistently provide up-to-date, reliable market information so you're well-equipped to make confident decisions. Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you. At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next. Bankrate logo

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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Editor’s note: Some of the offers on this page may be expired. Check out our page for the most up-to-date offers for our favorite credit cards. If you’re planning to apply for a new credit card in 2017, know this: The interest rate you pay likely will be higher than it was just a few weeks ago. That’s because credit card issuers have begun to respond to the Federal Reserve’s short-term interest rate hike last month by boosting rates on credit card offers. I began tracking variable rate offers in November 2016 on 14 cards from popular credit card issuers in anticipation of the rate increases. All of those cards now have higher rates — both on the low and high end of the ranges you see when applying for a card. RATE SEARCH: Look now for a . The issuer determines your interest rate within the range based on your creditworthiness at the time of application. Increased rates on both ends of the credit spectrum means excellent credit won’t provide you an escape from higher APRs. Every issuer I surveyed that has increased annual percentage rates since the Fed meeting has done so by the same 0.25 percent the central bank increased its benchmark interest rate. APR data is accurate as of date of posting. Offers mentioned below may be expired. Credit card interest rates on the rise Credit card APR range as of Nov. 28, 2016 APR range as of Jan. 3, 2017 American Express Blue Cash Everyday 13.24% to 23.24% 13.49% to 23.49% BankAmericard Cash Rewards 13.24% to 23.24% 13.49% to 23.49% Capital One Venture Rewards 13.24% to 23.24% 14.24% to 24.24% Capital One Quicksilver Rewards 13.24% to 23.24% 13.99% to 23.99% Chase Freedom 14.24% to 23.24% 16.24% to 24.99% Chase Slate 13.24% to 23.24% 15.74% to 24.49% Chase Sapphire Reserve 16.24% to 23.24% 16.49% to 23.49% Citi Simplicity 13.24% to 23.24% 13.49% to 23.49% Citi Double Cash 13.24% to 23.24% 13.49% to 23.49% Citi Thank You Preferred 13.24% to 23.24% 13.49% to 23.49% Citi Diamond Preferred 12.24% to 22.24% 12.49% to 22.49% Citi Prestige 15.49% 15.74% Discover it Cash Back 11.24% to 23.24% 12.24% to 24.24% Wells Fargo Visa Signature 12.4% to 26.24% 12.65% to 26.49% Source: Issuer websites The only issuer among the ones I tracked not showing a rate change on its website: JPMorgan Chase. A spokeswoman for the bank’s credit card division said its rates increased on Dec. 20, but had not yet been updated on marketing materials. Still, the impact of these rate increases across all cards hasn’t yet been felt. Bankrate surveys 131 credit cards across 50 different issuers each week. As of the last week of 2016, the was 16.27%, a slight increase over the previous week, although it’s not even the high-water mark for the month.

Impact on existing balances

If you don’t plan to apply for a new card in the new year, you’re still not immune to a rate hike. While the Credit CARD Act of 2009 bans most retroactive rate increases, it does allow issuers to adjust APRs on variable rate cards tied to an index. Most cards are tied to the , which increases or decreases based on the Fed’s own rate adjustments. CARD SEARCH: Delay your own personal interest rate hike by grabbing a . Your credit card agreement will spell out how soon after the prime rate changes that you can expect a rate hike on your card. The most recent credit card agreements the issuers of the 14 credit cards I tracked filed with the Consumer Financial Protection Bureau show generally you should feel the hike soon — if you haven’t already. The agreement for the Chase Freedom card, for example, says it will use the prime rate as published two business days before the end of each billing cycle. “If the U.S. Prime Rate changes, we’ll apply the new variable APR starting from the first day of the Billing Period when we take the U.S. Prime Rate from the (Wall Street Journal),” according to the agreement. My most recent American Express statement — dated Dec. 22, little more than a week after the Fed increased rates — already showed a change in my APR. The issuer bumped my interest rate from 17.49% APR to 17.74% APR. This isn’t a big deal for me because I pay in full every month. But for others, this hike may pinch.

Late payments could increase

Prior to the rate hike, the credit bureau TransUnion calculated that a 0.25 percentage point rate hike would on adjustable rate accounts by $6.45. Most consumers will be able to handle that additional cost, but 9.3 million Americans are expected to feel “payment shock” that could lead to late payments and defaults, TransUnion found. SHARE: Mike Cetera

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