The new credit card interest rate for American Express loans and credit cards is rising to 7.25%, which means you can save up to 30% on your new credit cards.
The new 7.75% credit card rates were announced Tuesday by the Federal Reserve.
The credit card companies announced they would raise the interest rates on loans from 3.25% to 7% over the next year.
The higher interest rates apply to the following categories of credit cards:AAA, Discover, American Express, American Eagle, MasterCard, Visa, Discover Platinum, and Visa Signature.
The interest rate is the same on all types of credit.
The rate will increase by 0.5% for the first three months after the rate is increased, but then the rate will remain the same until June 2019.
The 10-year rate will also increase.
For the first two years after the increase, credit card fees will be the same as they are now, with a flat monthly fee of $1.99.
The monthly fee will go up to $2.99 starting in 2020.
The average monthly credit card balance will increase from $11,827 to $17,845.
The rates apply on new credit and credit card accounts, and can be applied to any new credit or credit card that has a credit limit of $50 or more.
Credit card issuers said the rate changes will be phased in over the coming months.
The new rates are effective April 30, 2020, and will apply to American Express cards, Visa cards, and Discover cards for credit cards with a minimum credit limit and for American Eagle and MasterCard cards for cards with minimum credit limits.
The increase comes as more Americans are taking out new credit, but the number of Americans using credit is still relatively small compared with the number who have mortgages or student loans.
The number of people with credit card debt in the United States has more than tripled since 2010, according to the Federal Trade Commission.More: