Dive Brief:
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Several news outlets have picked up findings from a recent study by credit card review site Creditcards.com, which warns consumers that many of the cards have become less of a deal.
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Interest rates have risen more than 2 percentage points in the past four years, for an average annual percentage rate of 23.23%, the survey found. Store-branded cards that function as credit cards that can be used as payment at places beyond that store had lower rates, on average. Rates are as high as 28.99% (Zales), while Target, Wal-Mart, and Costco had the lowest rates.
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Rewards programs have become more complicated, and interest charges are likely to blow away any savings a consumer might get through opening the card or as a preferred customer, according to the report, which looked at 61 major retail-store credit cards.
Dive Insight:
The consumer-unfriendly nature of retail-store credit cards came through in this survey by Creditcards.com, and several news outlets picked up the story, from major outlets to local ones. Credit card policies and rewards programs are opportunities for retailers to gain and cement their customers’ loyalty, but it’s an area in which to tread carefully.