American Express to raise annual interest rates on credit cards
American Express is raising annual interest rates on its credit cards for the first time in over five years.
Interest rates will be increased from an average of 2.5% points to at least 12.99% following a review last year, reports Bloomberg.
Company spokeswoman Elizabeth Crosta said: “We analyzed our credit-card portfolio last year and found customers that had APRs considerably lower than market rates, sometimes as low at 3.25%.”
The move will impact over one million cardholders. The company has already send letters to the affected customers, citing that they pay less than cardholders with similar credit profiles at other companies.
Crosta added that the rate hike will affect a host of variable-rate products such as its proprietary and co-brand credit cards.