The global economy has been hit hard these past couple of years, with supply chain problems, increased inflation, and gas price increases all happening across the world. And Disney hasn’t escaped the problems — we’ve seen many of these issues affect the parks.
Now, another problem is affecting people across America, although it can be hard to see at first: increasing credit card interest rates. Find out what’s going on with interest rates now and learn what that has to do with Disney.
Recently, CNBC reported that credit card debt in America is reaching new heights. Although many people saved money during the 2020 pandemic due to a decrease in traveling and going out in general, recent price jumps on gasoline, housing, groceries, and more have resulted in increased debt.
The Federal Reserve Bank of New York reported that “credit card balances jumped $71 billion year over year.” As a result, some credit card companies are increasing interest rates, and those rates could reach “a record high of 19%” by the end of 2022. Currently, the average interest rate is about 17.46%.
Apparently, many people are using their credit cards to fund vacations, which they may have put on hold for a couple of years. One report showed that “vacations are the top credit card expense in 17 states.” We’ve seen a big increase in travel lately and especially in international travel. The trend seems to be to go big after a long time with no vacations at all.
You may know already that there’s a Disney credit card available. So how does this card rank when compared to other cards’ interest rates? Let’s take a look.
The Disney Premier Visa Card from Chase comes with some benefits that are targeted at Disney fans. For example, users can earn Disney Rewards Dollars from purchases, including 5% on Disney+, Hulu, or ESPN+ purchases; 2% on gas stations, grocery stores, restaurants, and most Disney locations; and 1% on most other card purchases. Those rewards dollars can go towards Disney-related purchases, such as visits to the Disney parks, tickets to Disney movies, merchandise on shopDisney, and airline tickets.
Currently, the card has an APR of 15.49% to 24.49%, depending on each user’s creditworthiness. Chase says that “these APRs will vary with the market based on the Prime Rate.” So the low end of that range is actually below the national average for interest rates. But the actual interest rate could be higher, depending on each person’s creditworthiness. Also, note that there is an annual fee of $49 to use this card.
There are a few other perks to take advantage of if you have a Disney Visa Card. Cardholders can get 10% off at many Disney World restaurants, 20% off purchases from Joffrey’s Coffee & Tea Co. (which has several locations in Disney World), and 10% off purchases of $50 or more at many Disney-owned gift shops.
We’ll watch for more travel news that could impact your upcoming Disney vacation, so keep following AllEars for all the latest updates!
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Do you have a Disney Visa Credit Card? Let us know if you think it’s worth it in the comments.