MINNEAPOLIS -- Norwest Corp. said its credit card unit will lower interest rates on June 1 for cardholders with good payment records.

Annual rates of qualifying MasterCard and Classic Visa customers will be cut to the prime rate plus 9 percentage points, or 15.5% initially. Gold card customers will pay 7.4 points over the prime, or 13.9%.

The new rates can change quarterly. The previous rate was fixed, at 19.8%.

Norwest Card Services, which has more than two million cardholders, said 1.4 million are eligible for the new pricing and 70% of that number qualify initially.

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