Why are credit card APRs so high?
Credit card interest rates have a high mark up over the prime rate. Why are card APRs so high?
4 min read
Mar 22, 2023
EXPERTISE
- Consumer law
- Monetary policy
- Debt management
- Mortgages
EDUCATION
- MBA and BA in Economics from accredited Indian universities
- M.A. in Journalism, University of Mississippi
Making good financial decisions enables people to get more out of life, and I’m happy to contribute to that endeavor.
— Poonkulali Thangavelu
Highlights
- Extensive journalism experience covering personal finance and business topics
- Covered home price fluctuations leading up to the housing market crash
- Views credit cards as a good financial resource to draw on, if used wisely
Experience
Poonkulali Thangavelu is a senior writer and columnist at CreditCards.com and Bankrate, addressing debt and credit card-related legal and regulatory issues.
She believes that making good financial decisions enables people to get more out of life and is happy to contribute to this endeavor. She uses credit cards extensively and sees them as a good financial resource to draw on, if used wisely.
She has extensive journalism experience covering personal finance and business topics. She draws on her financial expertise (she holds an MBA degree, with finance and marketing concentrations, as well as a BA in economics from accredited Indian universities, in addition to an M.A. in journalism from the University of Mississippi, where she was awarded a graduate assistantship) and likes to simplify the subject matter to enable readers to make good decisions. And she has participated in the University of Pennsylvania’s Wharton seminars for business journalists program to keep abreast of business topics.
While covering the mortgage market for National Mortgage News, she curated and edited a newsletter targeting the home-equity lending niche of the mortgage industry. In this role, she cautioned that home prices were getting out of hand in the period leading to the housing market crash that started in 2006.
She has also contributed to multiple business and consumer-oriented publishers, including Investopedia, CreditKarma and Multi-Housing News. Her work has been picked up by various national publishers such as the San Francisco Gate, Chicago Tribune and McGraw Hill, along with being syndicated to Fidelity, MSN, Nasdaq, Yahoo! and others.
Her career includes a stint doing consumer market research for global advertising agency Ogilvy (formerly Ogilvy & Mather) as well as experience as an equity analyst and writer.
Making good financial decisions enables people to get more out of life, and I’m happy to contribute to that endeavor.
— Poonkulali Thangavelu
Poonkulali's latest articles
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How the Fed affects credit cards
The Fed continues its fight against inflation and is expected to take rates higher, meaning cardholders could see higher rates, too.
4 min read Mar 22, 2023 -
When can a credit card issuer raise your interest rate?
Credit card rates have been going up. When can a lender raise your rate?
4 min read Mar 10, 2023 -
Can you be liable for a spouse’s credit card debt?
You are generally not responsible for your spouse’s credit card debt unless you are a co-signer for the card or it is a joint account. But some state laws vary and you may be liable for this debt.
3 min read Mar 08, 2023 -
Credit card balances increased in January, Fed report shows
Credit card balances have been growing, with consumers piling on debt as prices rise. The most recent Fed data shows card balances continued to grow in January.
3 min read Mar 07, 2023 -
Do all grocery store purchases earn grocery cash back rewards?
Do only food items qualify for grocery cash back rewards?
3 min read Mar 07, 2023 -
I was approved for a new credit card and got two. What should I do?
What happens if your issuer accidentally sends you two credit cards, and how to ensure it doesn’t hurt your credit score.
3 min read Feb 27, 2023 -
What the CFPB’s proposed $8 credit card late fee cap could mean for cardholders
The CFPB’s recent proposal to cap late fees, and what it could mean for you.
5 min read Feb 22, 2023 -
What can I do if my credit card billing error dispute is denied?
Credit card issuers must provide an explanation for denying your billing error dispute.
3 min read Feb 14, 2023 -
Survey: Nearly 1 in 4 Americans in relationships are hiding financial secrets from their partners
More than half of U.S. adults say financial infidelity is just as bad as physical cheating.
4 min read Feb 09, 2023 -
How does my credit card payment get allocated?
If you make more than your minimum payment, the excess should go towards higher-interest balances.
2 min read Feb 01, 2023 -
My new card has a lower credit limit than I expected
What should you do if you’re not happy with the credit limit on your new card? Is canceling the card a good idea?
3 min read Jan 31, 2023 -
New X1+ card expands on the X1 experience, but for an annual fee
Marketed as a “smart card,” the X1+ credit card brings additional features and rewards for the travel savvy.
2 min read Jan 26, 2023 -
Can a bank cancel my dead parent’s credit card if I have power of attorney?
A card issuer will shut down a credit card account when the primary cardholder dies.
3 min read Jan 23, 2023 -
How can I get a credit card refund for my canceled Southwest flight?
Here’s how to get refunded for your canceled Southwest flight.
3 min read Jan 05, 2023
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8 different types of credit cards
A variety of cards on the market meet specific needs. How do you choose a suitable card?
6 min read Mar 20, 2023 -
Credit card information: The basics you need to know
From security codes to minimum payments, here are the concepts you need to know.
6 min read Mar 14, 2023 -
Consumer credit protections: Know your rights
Credit card consumers enjoy various protections under laws such as the CARD Act.
5 min read Mar 09, 2023 -
Do I need a co-signer for my credit card if I’m under 21?
If you are under 21, you will need proof of your income or to add a co-signer to get a card, but there are other options you can consider.
4 min read Mar 08, 2023 -
How to remove an authorized user from a credit account
Looking to remove an authorized user? The process is simple.
5 min read Mar 07, 2023 -
Preapproved and prequalified credit cards: What’s the difference?
What’s the difference between preapproved and prequalified? Learn the difference.
5 min read Mar 06, 2023 -
Why I made my child an authorized user on my credit card
Learn the benefits of making your child an authorized user on your credit card.
5 min read Mar 03, 2023 -
What is a FICO score?
Building a good FICO credit score is one of the best things you can do for your financial health. Here’s what your FICO score entails.
5 min read Mar 01, 2023 -
How to get a business credit card
A business credit card is a great way to keep your personal and business finances separate and can come with some extra perks.
4 min read Jan 18, 2023 -
What are usury laws and maximum interest rates?
The CARD Act doesn’t set a cap on interest rates, but there are things you can do if your rate rises.
5 min read Dec 23, 2021
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Charge cards vs. credit cards: What are the differences?
You can carry a balance on a credit card, but not with a charge card.
6 min read Feb 16, 2023 -
Wells Fargo Active Cash vs. Citi Double Cash
Both cards offer 2 percent cash back on all purchases, but offer different benefits.
5 min read Jan 30, 2023 -
Best travel credit cards with 0% APR
Compare and pick the best 0% APR travel credit cards
6 min read Jan 30, 2023 -
Guide to Bilt Rewards Mastercard
This card lets you pay your rent with no added fees and earn rewards while you’re at it.
4 min read Jan 26, 2023 -
Guide to Comenity Bank-issued credit cards
Comenity Bank, now known as Bread Financial, offers 140+ store credit cards to retailers around the world.
5 min read Jan 25, 2023 -
Best credit cards for shopping in 2023
No matter the season, a rewards card can help lighten the load of your spending.
11 min read Jan 18, 2023 -
The best credit card deals for 2023
The right credit card deal can make holding a card even more valuable.
6 min read Jan 16, 2023 -
Citi Premier vs. Chase Sapphire Preferred
The Citi Premier and Chase Sapphire Preferred are both solid rewards cards.
5 min read Jan 13, 2023 -
Can you pay student loans with a credit card?
You can pay your student loans off with credit, but that doesn’t mean you should.
5 min read Jan 10, 2023 -
Best business balance transfer credit cards for 2023
Here’s what you need to know about the best cards in this niche.
5 min read Jan 10, 2023 -
How to maximize cash back with your credit card
In a world where most people pay with plastic for convenience already, it makes sense to have a comprehensive credit card strategy in place to get the most out of cash back rewards.
5 min read Jan 05, 2023 -
Capital One Quicksilver vs. Citi Double Cash Card
The Citi Double Cash earns the most rewards, but the Capital One Quicksilver offers some additional benefits that might be more valuable to some cardholders.
6 min read Dec 09, 2022 -
A complete guide to Amazon financing and payment plans
Need extra time to pay for your Amazon purchases? Find out your financing options here.
6 min read Nov 21, 2022 -
Capital One Spark Cash Plus vs. Chase Ink Business Cash
Business owners looking for cash back rewards may want to consider the Capital One Spark Cash Plus or the Ink Business Cash Credit Card.
7 min read Apr 04, 2022 -
How to cancel a credit card without hurting your credit score
Canceling a credit card delivers a hit to your credit score, but you can minimize the damage. Here’s how.
3 min read Mar 29, 2022