Since December 2008, banks have increased purchase APRs by approximately 30% and cash advance APRs by 14-20%.
Among APRs paid by users with auto loans, Milwaukee residents are paying the most: 14.47 percent.
These institutions are clearly trying to get ahead of any negative impact by raising APRs on all customers early.
They could also potentially raise minimum payments, forcing their most cash-strapped customers to pay late, incurring higher penalty APRs and fees.
While penalty APRs are still being instituted by 94% of bank cards, almost half of them have stopped disclosing the actual rates.
We're not talking streamers and bright paper signs advertising low APRs.
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Part of the very high APRs is precisely because we are adding a fixed fee, charged for a short period of time, up into an APR.
Many credit unions are really no different from banks, and they offer similar rates, while others offer credit card APRs well under 10%, even for people with middle of the road credit.
"People believe that APRs are a dependable way of comparing credit cards, but our research shows that APR cannot to be relied upon for true credit card comparisons, " said Alena Kozakova of Which?
The CARD Act restricts credit card companies from restructuring the interest rates on existing balances held on personal credit cards and from applying penalty APRs on such cards until you are 60 days delinquent but does not guarantee similar protections for business credit cards.
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