How to save hundreds of dollars on your credit card payments | CBS News

How to save hundreds of dollars on your credit card payments | CBS News

How to save hundreds of dollars on your credit card payments | CBS News

In the world of credit cards, bigger isn’t always better, especially for customers. The Consumer Financial Protection Bureau (CFPB) recently revealed that smaller banks and credit unions tend to offer more favorable credit card terms and interest rates than the largest issuers. According to their findings, the 25 largest card issuers charged customers interest rates significantly higher — by eight to 10 percentage points — than those offered by smaller lenders and credit unions.

This discrepancy in interest rates is particularly striking for consumers with good credit scores, where the median interest rate difference between large and small issuers can translate to hundreds of dollars in additional interest payments annually. For instance, for an average cardholder with a $5,000 balance, the disparity can mean shelling out an extra $400 to $500 in interest each year.

The CFPB’s analysis, based on a wide array of credit cards offered in the first half of 2023, underscores the importance of consumers being proactive in seeking credit card options. Rather than simply responding to large issuers’ offers, experts recommend contacting local banks and credit unions, which often provide better terms.

Interestingly, these findings are particularly relevant for consumers who carry balances from month to month, as opposed to those who pay off their cards in full each billing cycle. Large banks tend to charge higher interest rates and are more likely to impose annual fees, contributing to the mounting debt burden many Americans face.

As credit card balances continue to rise, along with delinquency rates, it’s becoming increasingly crucial for individuals to manage their finances wisely and seek resources for debt relief and financial counseling. Organizations like the National Foundation for Credit Card Counseling and America Saves offer valuable assistance and guidance for those looking to break free from the cycle of debt………..full-loaf-600x400-1-e1700879832480 How to save hundreds of dollars on your credit card payments | CBS News[read more]

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Rising-Dough-e1700879911412 How to save hundreds of dollars on your credit card payments | CBS NewsHow might understanding the differences in credit card terms and interest rates offered by large banks versus smaller lenders influence consumer behavior and financial decision-making, especially among younger and lower-income households?

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stonestreetcoffee.com ☕️ **Discover Stone Street Coffee Company - Your Coffee Haven!** Today's Dough readers, if you're on the hunt for exceptional coffee and cold brew, look no further than Stone Street Coffee Company. We at Today's Dough are smitten with their rich coffee blends and refreshing Cold Brew. Stone Street's commitment to quality shines through in every sip. Now, exclusively for our readers, click the banner above to snag a $5 off coupon on your next order. Experience the finest, ethically sourced beans roasted to perfection. Join the Stone Street community, savor top-notch coffee, and elevate your daily brew. ☕️🌟

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