Understanding Synchrony Bank Credit Card Interest Rate Changes

Synchrony Bank credit card interest rate changes can be a mystery to many cardholders. Synchrony Bank can change your credit card interest rate at any time, often without warning.

The bank can increase your interest rate if you miss a payment or have a history of late payments. According to Synchrony Bank's terms, they can also raise your rate if your credit score drops.

Synchrony Bank typically gives you a 25-day notice before changing your interest rate. This notice period is outlined in the bank's terms and conditions.

Synchrony Bank has recently announced that it's hiking interest rates on its credit cards to offset the new rule on late fees. This change is expected to affect many consumers who use store-branded credit cards or medical credit cards.

Synchrony issues store-branded credit cards through retailers like Lowes, TJ Maxx, and Sam's Club, and it's also the largest issuer of medical credit cards with its CareCredit card. This means that many people who use these cards will see higher interest rates.

Consumer advocates have questioned the justification for the rate hike, pointing out that Synchrony appears to be in good financial health, with its stock jumping 5% on Wednesday. Does Synchrony really need to raise rates to 34.99%?

The new late fee rule, which will lower late fees to $8, is expected to encourage up-front price transparency instead of back-end junk fees. This change could help consumers avoid hidden fees and make more informed decisions about their credit cards.

Here are some key interest rate ranges for Synchrony credit cards:

It's worth noting that Synchrony's interest rates are already relatively high, and the new rate hike will only make them more expensive for consumers.

The Synchrony Premier card offers a 23-day grace period to avoid paying interest on your purchases.

During this timeframe, which runs from the end of the billing period until the card's payment due date, you won't owe any interest if you pay your balance in full.

If you carry a balance, interest will accumulate daily at the card's regular APR, which ranges from 18.24% to 33.99% Variable.

The Cash Advance APR is slightly higher, ranging from 21.24% to 36.99% (Variable).

You can avoid interest altogether by paying your balance in full during the 23-day grace period.

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