Why Credit Card Interest Rates Are Still So High

Millions of Americans opened their credit card statements this year expecting some relief. The Federal Reserve cut interest rates three times in late 2025, and common sense suggests borrowing costs should have followed. Instead, credit card interest rates remain stuck near record highs, and for many households carrying a balance, the cost of debt keeps climbing. This gap between Fed policy and what consumers actually pay has become one of the most misunderstood stories in personal finance, and it's affecting how tens of millions of Americans manage everyday spending.