How to save hundreds of dollars on your credit card payments
CBSN
When it comes to credit cards and the banks that issue them, bigger is most definitely not better — at least for customers.
That's because small banks and credit unions typically offer far better credit card terms and interest rates than the largest issuers, the Consumer Financial Protection Bureau said in a new report. In fact, the 25 largest card issuers charged customers interest rates that were eight to 10 percentage points higher than the rates on products from smaller lenders and credit unions, according to the federal agency.
Notably, even for consumers with a strong credit score that can amount to hundreds of dollars in additional interest payments per year, the CFPB said. The median interest rate for people with good credit — a score between 620 and 719 — was 28.20% on cards from from large issuers and 18.15% for small issuers, according to the findings.
