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Why Are Credit Card Rates So High?
A look at why U.S. credit card rates are so high.
Consequently, the largest credit card banks rank among the world’s top marketers, with budgets comparable to consumer giants like Nike and Coca-Cola. Notes: This chart presents a scatter plot of borrowers’ interest spreads against bank-level operating expense rates, with separate data points for portfolios originating at FICO scores of 650 (light blue), 700 (red), and 750 (gold). How to cite this post: Itamar Drechsler, Hyeyoon Jung, Weiyu Peng, Dominik Supera, and Guanyu Zhou, “Why Are Credit Card Rates So High?,” Federal Reserve Bank of New York Liberty Street Economics, March 31, 2025, https://libertystreeteconomics.newyorkfed.org/2025/03/why-are-credit-card-rates-so-high/.
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