In an effort to ward off a deep depression, the Fed dropped its benchmark rate to a record-tying low of 1 percent, and the Bank of England recently slashed Britain's base rate by a record 1.5 percent. Since many credit cards are pegged to the prime rate, which is tied to the fed funds rate, you should expect to see some relief on your annual percentage rates any time now, right?
Well, not so fast. If you read the fine print in your credit card's terms and conditions, you will discover that credit issuers can actually change rates at any time for any reason. In fact, experts believe some credit card APRs have hit issuer-imposed "floors", which means they will fall no further. If you're not sure whether your credit card has such a thing, try skimming through the fine print for words that indicate your rate will "Never be lower than X%". Many credit card floors fall between the 10-12% range.
