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For the first time in the U.S., punitive interest rates charged by the top U.S. general purpose credit card issuers will slip past the 31% barrier. Due to the increase in the prime rate this week to 7.25%, Chase, Citibank, and Bank of America will begin charging some cardholders next month an annual interest rate of 31.24%. The three issuers set their rates at prime +23.99% for cardholders who miss payments, exceed the credit line or whose credit score deteriorates. However, most issuers consider a number of factors before imposing their highest rates on cardholders. For example, the length of time your account has been open; the existence, seriousness and timing of defaults; and other indications of your account usage and performance. Make sure you play by the rules or you can get truly burned.
