Still using your Macy’s credit card after the interest rate increased to 35%?

Retail giant Macy’s may very well be losing customers after a video surfaced online raising concerns about its hefty 35% credit card interest rate.

A video found on the TikTok account Latina Plant Priestess (@latinaplantpriestess) went viral after a customer received a letter about the increased APR. The woman on camera warned other Macy’s customers that even with good or excellent credit, the card’s interest rate shall be 34.39%. “Here’s a warning, everyone. I received this letter as an update from Macy’s; my credit card, I have excellent credit,” she said.

“Oh, look what it says now,” showing the card’s APR jumps to 34.49%. “They’re crazy. They can close my account.”

The letter said customers have until Aug. 26 to dispute the latest rate, but in the event that they don’t, the TikToker interpreted it as, “You know they lost me. I was a customer. They’re crazy.”

customers began receiving letters in April 2024. Experts say growth as a nationwide trend value noting, but it surely have to be admitted that Macy’s rate is unusually high“Credit card rates have hit record highs in recent months,” said Bankrate senior industry analyst Ted Rossman. “The national average is up about 4.5 points since the Fed started raising rates; some cards have gone up even more.”

Rossman identified that retail industries have the highest APRs, highlighting several brands with rates above 30%, reminiscent of Petco and ExxonMobil. The average rate for many credit cards is 20%.

The analyst said it’s not only interest rates that buyers ought to be being attentive to. Rossman said retailers are also raising rates to follow the Consumer Financial Protection Bureau’s (CFPB) efforts to lower late fees. “Right now, the average late fee on a credit card is $32, and the CFPB is trying to lower it to $8. They were supposed to do that in May, and then a federal judge temporarily overturned that, and it’s still in the courts,” he said.

“Store credit cards are more heavily burdened with late fees than general Amex or Capital One cards, so many store card issuers have begun using other levers to offset the potential decline in late fee revenue.”

TikTok Video Comments call pulled the company for the aggressive rate; some even said there was nothing in the store value that top of a rate. “I have the same situation. I also have a Macy’s card. There is not a single thing in Macy’s worth buying at 34% interest,” @bakwin67 said.

Other users mentioned firms like TJMaxx, Marshall’s, JCPenny’s and Kohl’s as doing the same thing. “Tjmaxx, Marshall’s, HomeGoods cards are exactly the same! I hate that I even opened a card with them,” @rozzckz wrote.

Some viewers of the videos advised that paying off your credit card could help mitigate a few of the fees and penalties promoted, somewhat than simply closing your account. “Just pay it off as soon as you use it. You’ll never pay interest, so don’t pay attention to it and don’t close your account because it will look bad on your credit profile,” @diamond said.

Consumer credit reporting company Experian agrees with this idea. “In general, keep unused credit cards open to benefit from a longer average credit history and lower credit utilization,” the company said. “Consider putting one small regular purchase on the card and automatically paying it off to keep the card active.”