In September the Federal Reserve slashed its benchmark rate for the first time in four years, and while any rate cut was a welcome move, the central bank dropped the Fed rate by a surprising 50 basis points rather than the widely expected 25 points. That decision quickly had far-reaching consequences, resulting in rates dropping on everything from mortgages to home equity loans. 

But while borrowing money with a loan is now slightly cheaper thanks to the Fed’s rate decision, one area where borrowers could use some extra help currently is credit card debt. After all, credit card debt issues are compounding nationwide, with the average cardholder currently carrying approximately $8,000 in credit card debt and the average credit card interest rate now hovering near 23% — a record high. 

Luckily, the Fed is widely expected to continue to cut rates at its next two meetings in November and December. So, many cardholders are hoping that it could help push down credit card rates to a manageable point. Will the next Fed rate cut actually lead to lower credit card rates, though?

Take steps to get rid of your credit card debt now.

Will credit card rates fall with the next Fed rate cut?

While cardholders may be holding out hope that the next Fed rate cut will ease the high-rate credit card environment, the reality is that the chances of that happening are slim. That’s due, in large part, to the fact that the Federal Reserve’s interest rate decisions can influence many aspects of borrowing and lending, but when it comes to credit cards, the relationship isn’t direct. 

Unlike other types of borrowing, credit card interest rates aren’t as heavily influenced by the Fed rate decisions. Credit card rates are tied to the prime rate, which is impacted by the federal funds rate, but the big difference between loan rates and card rates is that credit card issuers have a lot of control over when and by how much they adjust their rates. 

Historically, credit card companies have been quick to raise interest rates when the Fed increases the federal funds rate, but they have been slower to lower rates when the Fed makes cuts. This is partly due to credit card issuers wanting to maintain their profit margins, especially in a high-risk lending environment. 

Credit card rates have also been on an upward climb over the last several years, and rarely is there a significant dip to the average credit card rate. Card rates have primarily increased instead, and it’s unlikely that another Fed rate could would have a major impact on that trend. 

The upcoming Fed rate cut isn’t expected to be drastic, either, with analysts expecting a 25-basis-point cut to occur next. So, even if there is a credit card rate reduction as a result, the effect would almost certainly be modest — and would probably not make a meaningful difference. As a result, waiting for a Fed rate cut may not be the most effective strategy if you’re hoping to significantly reduce your debt load.

Start the debt relief process today.

How to lower your credit card interest rate now

Rather than waiting for credit card rates to fall in response to the next Fed rate cut, there are a few strategies you may be able to use to help lower your credit card interest rates now:

Negotiate with your card issuer

One of the most straightforward approaches is to contact your credit card issuer directly and request a lower interest rate. If you have a strong payment history and a good credit score, many issuers may be willing to offer a lower rate as a way to retain you as a customer. It’s always worth asking, as even a small reduction in your interest rate could save you a significant amount of money over time.

Transfer your balances

A balance transfer can be an effective way to reduce or eliminate your interest charges for a set period, as these cards offer low or 0% promotional APRs, allowing you to move your balance from a high-interest card to one with low or no interest for a promotional period (often 12 to 21 months). This gives you a window to pay down your debt more aggressively without accruing additional interest. 

Take out a debt consolidation loan

By taking out a debt consolidation loan at a lower interest rate than your credit cards, you can pay off all of your high-interest balances at once and consolidate your debt into a single monthly payment. This strategy can simplify your finances and reduce the total amount of interest you pay over time, as debt consolidation loan rates are typically lower than credit card rates.

The bottom line

While the Federal Reserve’s next rate cut could bring some relief to certain types of borrowers, the impact on credit card interest rates is likely to be minimal. Rather than waiting for the Fed to lower rates, you may want to take proactive steps to reduce your interest burden through a balance transfer, debt consolidation or negotiating directly with your credit card issuers. By taking control of your debt now, you can work toward financial freedom without relying solely on external factors like the Fed’s rate cuts to make your debt more affordable.

Cards Against Humanity, the company behind the purposefully in-poor-taste party game, is offering to pay certain voters up to $100 to cast a ballot in November.

Based in Chicago, Cards Against Humanity publishes an adult card game by the same name that has players fill in the blanks in a sentence with a word or phrase from their hand of cards. Marketed as a “party game for horrible people,” the most shocking sentence wins the round.

The company unveiled an initiative on Tuesday to encourage people who did not vote in 2020 to do so this year. A website created by Cards Against Humanity asks for personal information, which is then checked against voter data. “You wouldn’t believe how easy it was for us to get this stuff,” the company said of the information it said was purchased from a data broker.

If an eligible voter did not cast a ballot in 2020, they are offered a payout by the game company, so long as they do the following:

• Write an apology for not having voted four years ago.
• Create a plan to vote.
• Post a pre-written disparaging comment about former President Donald Trump on social media.

“In 2020, Trump lost Georgia by only 12,000 votes — way fewer than the number of nonvoters we’re planning to reach,” Cards Against Humanity stated. According to the website, 1,767 Americans have “apologized” so far.

Eligible voters across the nation can get a payment, but the biggest amounts would go to residents in seven battleground states: Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania and Wisconsin, the company said. People do not need to provide proof of voting, according to the terms of the promotion. 

The Trump campaign did not immediately respond to a request for comment.

Cards Against Humanity Election Pack

Cards Against Humanity is also offering a $7.99 card game expansion pack with an election theme, the proceeds of which will go to the company’s super PAC, dubbed “Cards Against Humanity PAC.” The group was registered as of Aug. 5, 2024, according to a Federal Election Commission filing. 

The bid to entice voters came days after America PAC — a pro-Trump super PAC financed by tech billionaire Elon Musk — urged people to sign a petition backing the First and Second Amendments and offered supporters $47 for each registered voter they were able to get to sign in swing states. If re-elected, Trump would be the nation’s 47th president. 

America PAC has contributed more than $96 billion to 2024 federal elections so far this year, according to nonprofit political finance tracker OpenSecrets.

In September, Cards Against Humanity sued Musk’s company SpaceX, alleging it had trespassed on and damaged property the card game bought in 2017 to block the former president from constructing a section of a U.S.-Mexico border wall.