# How Market Position Shapes Credit Card Interest Rates

- Source: NY Fed Liberty Street Economics
- Published: 2026-11-04T12:00:00+00:00
- Category: Markets
- Original: https://libertystreeteconomics.newyorkfed.org/2026/11/how-market-position-shapes-credit-card-interest-rates/
- Canonical: https://groundlevelnews.com/story/how-market-position-shapes-credit-card-interest-rates-f26475/

Why is it that two borrowers who look much alike can be offered very different rates when applying for a credit card? In a recent paper , we address this question by examining how the rate offered changes when the lender’s funding cost falls. Data on 14 million newly issued cards show that when a lender's funding costs decline, the lender passes less of that decline on to the offer rate when it ho

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