The Federal Reserve cut rates last year in an effort to reduce consumer interest rates on mortgages and loans. The result was lower rates for most loan and savings products, but there appears to be one exception to the rule. Credit card rates continue to increase as credit card issuers take any actions they can to recoup losses that they face from delinquent accounts.

Low-rate credit cards now average 11.62% while balance-transfer cards are at 13.15% and cash-back cards are at 13.82%. In November, Citigroup raised rates for 20%of its accountholders by an average of 3% (around the same time that it received $300 billion in government funding). Worse, these rate hikes are taking place across the board regardless of credit score. Most of these accounts carried low rates for years, which caused many consumers to be caught off-guard.

According to many experts, raising rates during these tough times could be a double-edged sword for companies. Raising rates may help their bottom-line in the short-term, but long-term the higher rates may cause an increase in defaults, where the credit card issuers get nothing. Higher rates can even push the most financially-stable consumers closer to financial ruin as many small businesses use credit cards for working capital loans.