DALLAS -- The good news continues for Military Star Card holders. For the 10th time, they will benefit from yet another drop in the card’s interest rate.

With the latest announcement by the Federal Reserve, key interest rates were lowered by a half percent. As a result, the Military Star Card reduced its interest rate from 9.75 percent to 9.50 percent, January 1. The interest rate on the Military Star Card has dropped five percent since January 2001 and is at its lowest point since the card was introduced.

This latest decrease broadens the highly competitive rate of the Military Star Card versus other credit cards. According to www.bankrate.com, the average variable rate for a standard credit card is 13.52 percent, a gold card is 12.96 percent and a platinum card is 13.02 percent.

The Military Star Card, which is not a bank card, is comparable to a private-label credit card, similar to those offered by retailers such as Sears, J.C. Penney, Home Depot and Target. Depending on a customer’s payment history, these companies will offer interest rates ranging from 21 percent to 24.99 percent.

The new rate does not apply to Military Clothing Plans, special promotions already in existence, or other special programs which may offer reduced rates such as reduced interest for JCS directed orders.

The Military Star card is accepted at all AAFES, NEXCOM, MCX and Coast Guard exchanges, including catalog and military clothing stores operated by AAFES and Marine Corps exchanges