After so many unpleasant changes in the recent past, here is some pleasant news to look forward to for credit card holders. In a surprise move, many credit card lenders are planning on reducing the interest rates on most of the existing credit card accounts.

This can be attributed to one of the rules that are a part of the Credit Card Accountability Responsibility and Disclosure Act that came into effect in late 2009 and early 2010. One of the rules stipulates that credit card lenders have to review their card holders’ account every six months and review the interest rates for people who have been making the payments on time. Over the last six months, the number of defaulters has come down drastically, showing that many card holders are making efforts to pay off their outstanding dues on time consistently. This has paid off since banks are all set to reduce the interest rates for these card holders.

According to the data from the Federal Reserve, average interest rate in 2009 stood at 14.31% as compared to 13.57% in the year 2008. While it is sure that many card holders will be intimated about the reduction in interest rates very soon, it is too early to tell how many of them will experience this change. Bank of America alone is set to reduce the interest rates on close to one million accounts, which is by far the largest by any bank in the United States.