Before swiping your credit card this holiday season, check if your interest rate has changed. Dozens of major U.S. retailers and their bank partners have raised rates on store-branded credit cards. According to a review of data gathered by Bankrate, at least 50 companies increased rates, including Big Lots, Gap, Petco, Burlington and Macy’s.

Between September 2023 and September 2024, U.S. retailers significantly increased interest rates on store-branded cards, reaching record highs before the Federal Reserve began cutting rates.

“So they’ve always been higher than general-purpose cards, but the high end used to be around 29-30%, and now it’s 35-36%,” said Ted Rossman, a senior industry analyst at Bankrate.

According to Bankrate, Big Lots raised rates the most — a full six percentage points. Gap made the second-largest increase, 5%, followed by Petco at 4.5%.

“This, in fact, is borrowing, and you have to pay attention to the credit card interest rate before you start charging,” said Usha Rackliffe, a finance expert at Emory University.

Currently, the average interest rate on a store card is at an all-time high. Meanwhile, credit card debt and delinquencies are reaching levels not seen in years.

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