Credit card experts have predicted that interest rates will continue to rise, with providers balancing the risks they are taking.

The Bank of England recently reported that write-off rates on credit card lending have now reached record highs, leading to spreads on unsecured lending sharply rising recently.

A spokesperson for Moneyfacts.co.uk detailed some of the changes to expect in the credit card market over the coming years and identified who would be affected.

She said: “Providers have been putting rates up and obviously there’s high unemployment and the risk of people defaulting and not repaying their debts is still quite high, so they’re very strict on who they give their cards to.

“The customers that pay off just the minimum every month are going to be the ones who are hit hardest. Read full article…

Credit card interest rates are affected by four different factors. These are credit rating, debt to income ratio, employment history and repayment history. Interest rates are normally connected with the US Prime Rate, the common national rate standard provided by the Federal Reserve Board or FRB. Your interest is being computed at the end of a billing statement period. This varies from one credit card holder to another. This will then be charged to you at the last day of your statement period. If you are good in managing credit, your credit card interest rates will be definitely lower.

Credit card companies look into your financial background when computing for interest rates. If you are in the habit of paying late, your interest rate might be increased.

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Credit cards featuring interest rates of maximum 16 percent may sound too good to be true, but if a number of congressional Democrats have their way, this could be coming soon to a credit card near you.

Last Wednesday, U.S. Rep. Louise Slaughter, D-Fairport said she planned to introduce legislation next week which, if passed, would cap credit card interest rates across the board at 16 percent APR. The bill, referred to as the Renewing America’s Commitment to Consumers Act, would also limit credit card fees, including late fees, to a maximum of $15.

“Watching how credit card companies have exploited people by increasing rates up to 30 percent and more is criminal, and this bill will allow us to put an end to this,” Representative Slaughter said in a statement announcing the bill. “Thin

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