Bad credit, credit card interest rates are how lending institutions make there money, but the amount of money depends on the consumers credit history. These interest rates in have become more responsive to the issuers costs of funds as more and more issuers have tied their rates directly to one of many indexes that move with the market rates. Your rates can go up or down depending on several things; late payments, over credit limit... and interest rates will add up quickly if you go over your credit limit or make your payments late.

Fees

If you plan to use your card to get a cash advance, you will want to look for a card that carries lower fees on cash advances because most are very high for a this type of transaction. Cards with rewards programs often will have annual fees and a higher interest rate. Be sure to read the information in your lenders agreement to see if there are other fees and charges. Lawyers in the area of credit card abuse actively pursue companies whose predatory practices involve unannounced credit reductions, unannounced rate increases, over limit Fees and special offers that are not honored.

Federal

Under federal law all solicitations and applications for credit must include certain information. This protection was provided by the federal Truth in Lending Act. Today, the Federal Reserve collects important information on credit card rates and fees, through two surveys of credit card issuers. Because of the significant changes in the fees and interest of services, the Federal Reserve started the Quarterly Report of Credit Card Interest Rates known as (FR 2835a) near the end of 1994.

It is time for Congress to try and rein in the banking institutions and create credit card interest rates that allow issuer to make a fair return without enslaving consumers in the process. For consumers interested in getting their credit card interest rates lowered, there are a few simple steps that experts recommend; make your payments on-time, stay under your limit etc... After you show your lender you are not a high risk you can generally negotiate for better rates.

Generally, the better a consumers credit score is, the lower the interest rates will be.