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The local news just aired a spot with their troubleshooter person helping people lower rates on CCs. She shared some success stories, like rates going from 22% to 11 and 24% to 12. One woman had 2 cards, one at 24% that got dropped to 13 and one at 29% that got dropped to 15. I never knew rates that high existed. Why are people carrying these high-rate cards around?
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David
The chief cause of failure in this life is giving up what you want most for what you want at the moment. -
A lot of people have CC's but have not used them in years. The companies can change the terms of the deal (including the interest) just by sending you a letter with your bill, and giving you the chance to cancel your account if you do not agree to the change. Many people are only now starting to use their cards, because of the economy, or because the companies have been sending out notices of cancellation for non-use of the account. So people have been just now finding out about the higher rates. It usually only takes a phone inquiry to get the rates lowered to a more reasonable rate, provided your credit is good and you have not been late or otherwise violated the agreement. The worst they can do is say "NO"... -
29%!!!!! I didn't know they allowed organized crime to own credit card companies!You don't need a parachute to skydive, you only need a parachute to skydive twice.Comment
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I think the same thing that CC companies do, i.e. raise the interest rate if you are late, should be done on the bailout money to the banks.
Years ago when we were first married, we piled up too much debt and had some real problems digging ourselves out. For the past 20 years, the charges on the CC get paid off when the bill comes.
I've never figured out why usury laws don't apply to the CC companies!!Joe
"All things are difficult before they are easy"Comment
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Because the credit card companies spent a ton of money to change the laws in their favor. Same thing happened with the bankruptcy reform."A fine beer may be judged with just one sip, but it is better to be thoroughly sure"Comment
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my rate went up becuase I paid the card off every month, religiously. Well, they didn't say that exactly, but one day recently we got a letter indicating rate was going from 10.99% (or something good) to 24.99%. I got my free credit report (hadn't done yet this year and was worried if something had gone aghast) and found nothing negative. So I called the cc company up and they said some mumbo-jumbo about market rates, etc. Last I saw rates were going down, not up. Anyway I asked to cancel my card, she offered a 14.99% rate, I asked if that was their game that they more than double your rate so you settle for a modest 40-50% increase. She said she didn't know what I was talking about. I cancelled the card. Now down to just amex and my debit card visa, which is a good thing me thinks except for a dooms-day scenario.
I know they don't make money from the likes of people like me who pay the things off every month and don't carry a balance, but they still earn the 1-3% transaction fee on each purchase, don't they? And while the interest rate shouldn't bother me if I pay it off each month, it was the principle of the matter.A Man is incomplete until he gets married ... then he's FINISHED!!!Comment
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It has been many years since I have paid any interest for new purchases or on transferred balances. I apply for a new card with these same terms every year and my request has never been denied. Am I lucky, or what?Comment
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Credit card companies do make a transaction fee for every purchase. The fee percentage is negotiable, depending on the vendor's sales volume. I heard a report the other day that what is driving the credit card interest rates up is the fact that credit card accounts have been bundled up and sold as securities, just like mortgages.- Chris.Comment
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Everyone you need to be very careful about moving credit card balances and opening new accounts because this reflects negatively on your credit SCORE. This score is used by Insurance companies in their rating and Banks and credit outside of the credit card issue.
Credit score weighs heavy on new accounts versus old and amount of credit available from open accounts. Too many accounts or newly opened accounts can cost you big time even make the interest on old card increase because of newly available credit, Longer an account is open the more favorable it reflects on your Score.
Remember Credit Score and having good credit are two different things, You can get a loan with good credit, but even with good credit you can have a bad credit score that will cost you more interestPawPawComment
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