Best Business Credit Cards

Why Are Credit Card Debts So Expensive?

Credit card annual percentage rate (APR) continues to surge while other debts are getting cheaper because of risk, COVID-19, and the global economy.The global pandemic severely impacted big credit card issuers. They are facing colossal credit losses. Credit card lending is still the best business model left in finance, but its cyclical nature keeps the best risk managers awake.

AVERAGE CREDIT CARD INTEREST RATE

The average credit card interest rate skyrocketed to 20.50 percent. The credit card interest rate is heading in a complete trajectory than the other financial products. According to Bankrate’s latest survey, the benchmark 30-year fixed mortgage rate is 3.060%.

The Federal Reserve cut its benchmark rate to zero back in March to facilitate cheap borrowing, but credit card borrowers do not benefit from historic low-interest rates.

Should You Pay The Chase Sapphire Reserve Credit Card $550 Annual Membership Fee?

● Chase Bank will increase the annual Membership Fee on its Sapphire Reserve credit card to $550. The company made the announcement about two weeks ago.

● In addition to its high annual fee, the Chase Sapphire Reserve credit card is super expensive.

● Perks such as $120 in statement credits for DoorDash Food delivery and 15% off Lyft rides don’t justify that hefty Chase Sapphire Reserve credit card’s annual membership fee.

BenefitsThe Chase Sapphire Reserve Credit Card comes with 50,000 bonus points after you spend $4,000 on purchases in the first three months from account opening. The bonus points are equivalent of $750 toward airfare, hotels, car rentals and cruises when you redeem through Chase Ultimate Rewards.

You also get up to $300 in statement credits as reimbursement for travel purchases charged to your card each account anniversary year.

The Chase Sapphire Reserve is a popular credit card, especially with cash-strapped millennials. Perks such as $120 in statement credits for DoorDash Food delivery and 15% off Lyft rides don’t justify that hefty Chase Sapphire Reserve credit card’s annual membership fee.

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