At least 50 stores have raisedcredit card APRsover the past year, according to aBankratereport.

As of September 2024, rates were as high as 35.99%.

But with theFederal Reserve cutting interest rates, shouldn’t credit card APRs be going down?

But moretraditional credit cardsoften have a lower APR and offer rewards and benefits that are useful beyond one retailer.

Why are we seeing higher store credit card APRs?

There are a few reasons why store credit card APRs are higher.

While the Fed doesn’t directly set credit card rates, banks typically move rates in the same direction.

Why aren’t rates falling?

Closed-circuit, store credit cards can only be used for purchases at that particular store or retail brand.

In addition, I can earn 2% cash rewards on most purchases at any store.

I like the boosted redemption rate when I book through the Chase Ultimate Rewards portal when booking travel.

Some of these cards also offer a0% introductory APRon new purchases.

However, Detweiler said it’s important to avoid letting these cards entice you to go intodebt.

You should still only charge what you’ve got the option to afford to pay off.

Read more:Store Cards vs.

Traditional Credit Cards: What’s the Difference?

What are your options if you have a store credit card?

Here are some options if you currently have a retail credit card.

Aim to pay more than theminimum monthly paymentto pay less in interest over time.

And you may be able to pay off your debt sooner.

You may also ask the issuer to consider a lower APR to save on interest, too.

But I quickly realized it wasn’t a good choice since I rarely shopped there.

I’ve sinceclosed the card.

If the credit card is your only line of credit, though, closing it could hurt your credit.

If you choose to do this, it’s best to check the card’s terms and conditions beforehand.