Consumer to Be Casualty of Bank Downgrades

The interest rate for credit cards continues to climb even though the prime rate has remained at 3.25% since December 2008. Interest charges are a primary source of income for lenders, and rates will continue to climb as the bank's own interest costs increase. These higher rates are usually always passed on to consumers. The best way for cardholders to avoid these interest rate hikes is to completely pay off the balance on your credit cards each month.

--By Bill Hardekopf

Bill Hardekopf is chief executive of LowCards.com, which compares and rates more than 1,000 credit cards. He is the co-author of "The Credit Card Guidebook."