The prime rate is merely a lending base rate used to make loans to certain borrowers.  It is not necessarily the lowest or best rate at which loans are made.  The prime rate is well publicized and fundamental rate established to base interest rates on certain loan types including credit card rates.  The prime rate is established by private banks and can vary between banks.  Credit card interest rates are often based on the prime rate plus a certain percentage to cover its risk associated with this type of consumer lending and add a profit margin.  Credit card rates based on the prime rate will vary between credit card companies due to the difference in the margin added to the prime rate to determine the credit card rate.

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