Are Interest Rates Getting Better?

Is it just me, or are credit card interest rates getting better?

I admit, I don't keep constant tabs on the interest rates on my credit cards (at least not before now), but about every six months I try to take a look and make sure that I know what the rates are and what the maximum limits on my cards are. If I have to carry a balance (like in the post-holiday season), I carry it only on the lowest card.

But this time around I did notice that my interest rates (on most cards) have gone down. Out of 12 credit cards, my average rate is 9.78%. I haven't been keeping close track, but that's at least 1% to 2% less than the last time I did this.

Of course this is very unscientific. My Old Navy card is still at 21% and one MasterCard is bottomed 4%. Everything else is in between.

Also - every card of course is different. Some are a fixed rate, some are tied to the prime interest rate, and I swear that some are in tune with the lunar cycle of the third moon of Saturn.

Best I can tell, the current prime interest rate is 3.25%. If you've got a bank that uses a fixed rate (like 19% for example) might be time to find a new bank - especially if you carry a balance.

Oh - and that 4% on the MasterCard is better than any other deal on the market, but I think that's a special rate for long-term customers. If you have a bank that you've dealt with a long time - try asking them if they'll lower the rate. Seriously, what could it hurt?

A colleague told me that he called his bank recently and the guy mentioned to him that they could reduce his interest rate... If my colleague asked them to. But he had to ask. So my colleague said "Can I have a lower interest rate?" and the guy on the other end said "Of course, we're happy to lower that for you!" He was a good customer, but their policy is the customer has to ask. I don't remember what bank he had - but I'd assume all of them are like that...