Libor Rate Credit Card Tips

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Posted: Mon Jan 10, 2005 2:41 am
Post subject: Libor Rate Credit Card Tips

Chocolate
Date: 9/27/2000 12:43 am CDT

I just want to clear up something to the Board Monitor that I posted previously about credit cards that bases their interest on the Libor Rate instead of the Prime Rate. I understood fully that a person's interest rate that a credit card company grants himhimusing the Libor Rate can be higher than another company that grants you an interest rate using the Prime Rate because it depends how many points (spread) are added on. What I was saying is that the Libor Rate by itself is always lower than the Prime Rate by itself! For instant, Libor Rate + 3.4% will be cheaper than Prime Rate + 3.4%. Capital One uses the LIBOR rate because at one point my interest rate was 9.31% which is less than the 9.9% fixed rate that Capital One also offers. But when I closed it, it was at 10.31% because the Libor Rate had went up. The Board Monitor says that Fleet also uses the Libor Rate. Does anyone know of other credit cards that uses the Libor Rate. Please respond. There may be other people who are not aware of this

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archive
Posted: Mon Jan 10, 2005 2:41 am
Post subject: Libor Rate Credit Card Tips

Board Monitor - CA
Date: 9/27/2000 5:35 pm CDT

Chocolate,

Thanks for the clarification...guess I misunderstood your original post. You bring up an interesting point. I would be curious to know of other issuers that use LIBOR. Offhand, I know of one other bank, Sovereign Bank, that uses LIBOR. Their web address is:

http://www.sovereignbank.com/perslending/credcard.html

I know there are others, but just can't think of any at the moment. Anyone know of others?

Best Regards,
Curtis Arnold
CFCCT P.R. Director
http://www.cardratings.org