"One of the unintended consequences of trying to impose limits on fees is that it often leads to higher rates," said Greg McBride, chief financial analyst at Bankrate.com.
Card issuers are mitigating their exposure against borrowers who may fall behind on payments or default, he said.
watch now"It doesn't surprise me that card issuers would try and get out in front of these changes," said Matt Schulz, LendingTree's chief credit analyst.
"Rates are not going up on an existing balance," McBride said.
However, credit card delinquency rates are already "elevated," with 8.8% of balances transitioning to delinquency over the last year, and the share of borrowers with revolving balances rising as more people rack up new debt over the holidays.
Persons:
Grace Cary, Greg McBride, McBride, Matt Schulz, LendingTree's, Schulz
Organizations:
Consumer Financial, Federal Reserve Bank of New
Locations:
Federal Reserve Bank of New York