In these economically-challenging times, in which credit is looked at as more of a valuable commodity than ever before, understanding what goes into credit card interest rates can be extremely important. The news shows and online magazines and websites are full of stories of people with outstanding credit who have lately seen the interest rates on their cards raised to previously unheard-of heights.

Why this is so has to do with a number of issues, some of which make a lot of sense but others of which may be due to the desire of a credit card issuer to increase profit margins on its credit card lines. Credit card interest rates are sensitive, as well, to rises and declines in larger money markets, where interest rates also rise and fall, making the cost of money more expensive or cheaper to borrow, for one.

When a bank that issues credit cards has to spend more money – in the form of paying higher interest rates – on the money it borrows to turn around and lend out (and a credit card is a highly-specialized form of loan) then it expects to pass on those costs to its customers. Lately, many banks have decided that a rise in interest rates on their credit card offerings is in order. Whether or not this is exactly fair is another question altogether.

Fortunately for most consumers, recent legislation passed by the Congress has sought to regulate more closely exactly what banks and other issuers of cards can do when it comes to credit card interest rates. Some cards – especially those which are issued to people with so-called “bad” credit – can feature interest rates that might make some people sit up and take notice, because they can come close to what a loan shark might demand in terms of “vigorish” or interest.

Putting aside the issue of what banks can do as far as credit card interest rates and whether they're fair or not, finding a good credit card that features a decent rate – which usually means one that consumers are comfortable in dealing with – isn't all that hard, even in these tightened credit markets. All it takes is a little research, which is conducted on the Internet, before agreeing to accept a card from any issuer.

And though it is the case that many mailboxes have dried up in terms of credit card offers that are sent in the mail, many banks will still take an application and deliver a favorable decision in cases where people can provide a decent credit history background, even today. Just remember that credit should be treated as a leverage instrument, meaning that it's smart to go for rewards or travel rewards-type cards, if one feels that one really needs a good credit card.

Credit card interest rates are determined using a number of factors, including how expensive money is to borrow when a bank is doing the borrowing. No bank or credit card issuer of some other type will ever fail to pass along a rise in its costs, which is probably the single biggest reason why interest rates seem to rise on credit cards on a regular basis. Remember, recent changes in the law help to protect the consumer more than was the case in the past, so take some comfort from that fact.