In recent months, numerous major U.S. retailers have significantly increased the interest rates on their store-branded credit cards, reaching unprecedented levels just before the Federal Reserve began its rate-cutting cycle. A review by Bankrate.com revealed that at least 50 retailers, including well-known names like Big Lots, Gap, and Petco, raised their Annual Percentage Rates (APRs) between September 2023 and September 2024. For instance, Big Lots raised its APR from 29.99% to a staggering 35.99%, marking the highest increase among those surveyed. This trend reflects a broader strategy by retailers to safeguard profits during a period of sluggish sales and rising credit card debt. Experts warn consumers to be cautious about signing up for these high-interest store cards, especially during the holiday shopping season when promotional offers are prevalent. Many individuals, like Jasmine Matheney, have faced severe financial repercussions after unknowingly accruing debt on these cards, highlighting the need for greater awareness of the terms and potential pitfalls associated with retail credit cards.
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