OT: Credit Card Rates To Double!
 

Some radio adds have been point this out for a few days now. None of the banks or credit unions have posted any info about it nor do they seem to know. I did some checking and discovered that the Controller of the Currency, is mandating a 100% increase in the minimum payment on credit cards by the end of the year. This is big news if you have large out standing balances on CC's.

Link

Re: OT: Credit Card Rates To Double!
 

Yes i'm aware of it, the reason for it is because the minium payment rate the CC companies are using now is a marketing gimick to get ppl to charge more, so the CC companies can rake in more money. the result has been far to many ppl accumulating far to much debt. the downside of this is alot of those same ppl probably can't afford the increseased minimum. (under the right circumstances the current minium can actully result in you going further in debt every month with out buying a thing, neat, huh)
One reason i'm thankful i'm what the CC compaines call a dead beat, i carry no balances.

Re: OT: Credit Card Rates To Double!
 

Thus it is NOT the rate going up.
Its the maximum screwage allowed going down slightly.

Of course, if you aren't paying it off in full each month, you're going to be screwed either way...

Re: OT: Credit Card Rates To Double!
 

That's the way I do it...the only way to do it. Of course, sometimes, Murphy has another plan to mess up your finances and put you in that Credit Card Blackhole. Thankful I've never been in that hole.

Re: OT: Credit Card Rates To Double!
 

You know, they put the mob out of business so the CC companies could go into business. CC are nothing more than plastic loan sharks.

The thing is there are no strong comsumer protection laws in place that protect consumers from CC companies. Universal defualts, bull [censored] late fees, over the limit fees, and unannounced interest rate hikes. Oh ya, the always famous unknown - yet oddly always approved - charges for such things as credit protection plus, thimbal collections - that you never get, map assist, road guide, and other wonderful things that you never use and never signed up for that always seem to push your limit over the top costing you even more money.

When you know your in trouble and ask the CC companies to lower your rate, they refuse. You then fail to make the payment and what do they do? They raise your interest rate to 29% and start calling and harrassing you.

Yet if you go through a credit counseling service, they always lower your rate.... WTF?

The credit card industry makes their own problems and dead beats by not working with people and by employing what should be considered illegal tactics to rip you off. And when you try and complain, you find that there is nothing you can do since the Controller of the Currency is funded by credit card companies. Go figure. If that is not a conflict of interest, no punn intended, then I do not know what is.

CC Companies = Mob
Control of the Currency (CotC) = Bought off Pigs!

Re: OT: Credit Card Rates To Double!
 

Naw, its the payday loan compaines who are the real sharks, effective interest on a payday loan hits near 600%.
the CC companies are over gown leaches.

Re: OT: Credit Card Rates To Double!
 

Interest rate? What's that? http://forum.shrapnelgames.com/images/smilies/wink.gif --What people should be saying, rather than paying the minimum.

If a credit card company signed me up for something I didn't want, they would either refund me my money or face a BBB complaint, along with the cancellation of my account, and possibly more.

Re: OT: Credit Card Rates To Double!
 

*Gasp*. My 0% interest rate would double to... 0%.

And then when this "introductory" rate runs out in a few months and they hike it up to 19%, I'd have to go and find another introductory 0% rate...

Shop around, and transfer your balance regularly. When I'm not paying 0%, I'm rarely paying more than 3%- that's less than either my bank loan or my mortgage.

Re: OT: Credit Card Rates To Double!
 

From the Payday Loan website:

*Finance charges are calculated on the basis of $10 per $100 borrowed for each 14 day period. APR for all PayDay OK loans is 260.71%.

260% Interest? How stupid do you need to be to pay that kind of interest? Talk about Instant Gratification.

Re: OT: Credit Card Rates To Double!
 

More like 'How desperate.' or 'How bad a credit rating.'

Finance charges that brutal reflect, at least partly, that the firm isn't going to get all its money back every time and quite regularly will get little or nothing back.

If the person borrowing was creditworthy they (should) go to a bank or get a low interest loan from some other source.

Besides APRs are misleading on a short term loan: http://www.nationalcashlenders.com/calculator.html

You get charged $20 per $100 regardless of how long you borrow for and the actual amount you pay back doesn't change. But the equivalent APR looks awful. On a 3 day loan its 2433%. But the amount you pay back hasn't changed its still $120 per $100 borrowed.

20% ain't cheap certainly, but if your desperate and no other bugger will lend you money it could be a hell of alot worse.

Re: OT: Credit Card Rates To Double!
 

Thank god I abstane from credit cards and loans.

I have enogh trouble spending oney I already have. I'm not about to start spending money I haven't earned yet.

Re: OT: Credit Card Rates To Double!
 

Unfortunately, it's not a good idea to abstain from credit cards and things of that sort. Building a good credit report early can really help you in the future when you start buying cars and houses. However, just because you have the credit doesn't mean you need to start spending beyond your means.

Re: OT: Credit Card Rates To Double!
 

Actually, Kwok, that brings up a question I have.

Does anyone know whether on line purchases, either with a debit card or second party paying company(such as paypal), affect a persons credit rating?

Re: OT: Credit Card Rates To Double!
 

A debit card transaction is in essence a cash transaction.

Using a credit card online or in a store doesn't have any real effect other than you are adding a balance to the card.

An aside, I believe credit card companies favor those who carry balances rather than those who pay it all off each month for giving increased credit limits.

Re: OT: Credit Card Rates To Double!
 

It would make sense that they do.

If the person is willing to carry a balance, why not encourage them to spend more money by making it readily available.

Re: OT: Credit Card Rates To Double!
 

Not just increased credit limits. A 'good' credit record makes it more difficult to get a new card. There's nothing in it for the firm if you pay off the balance each month, so why give you a card in the first place?

Re: OT: Credit Card Rates To Double!
 

Its the minimum payment on the balance you owe,that is being increased, not the interest rate. tears ago the minimum was 1/30th of your balance, then it was lowered to 1/40th. It was actually a marketing ploy for the CC companies to make more money.

in fact it turns out the guy who came with idea was also the guy who came up with 0% introductory rate. It to is a gimmick clever one at that. Its 0% if you payoff the balance in time frame the rate is in effect. if you don't pay off entire balance by that time your charged for that interest at the rate it would have been without the offer.

But your right,if your trying to pay off Your CC debt you need to shop around and switch cards, the kicker is don't cancel your oldest cards, you lose the credit lose the credit histery associated with them (unless its bad to begin with) which hurts you when your credit history comes in to play.

in regards to Payday loans, in virginia its come up several times the 600% figure is valid, some screwy loop hole in the state law.

Re: OT: Credit Card Rates To Double!
 

So thats why all CC junk mail has dried up, like i miss it.
actullay i've been debt free for over a year and half and i have more credit then i could ever afford to pay the minimum on, at the 1/40th rate.

Re: OT: Credit Card Rates To Double!
 

The credit card and gaining credit points are from regular and constant use of your credit card (and paying the debt off in full).

However, when it comes to things like Kwok said, houses and cars, your credit rating will be looked at in depth and your 'revolving credit' is important. This is the money you have borrowed and is still availiable to borrow in credit and is a factor of your interest rates. So if you are planning on buying something of that magnitude it's generally a good idea to have a few thousand in revolving credit that is not currently being used (meaning balance avaliable not balance used). This includes Lines of Credit from banks and credit unions and HELOC's.

Re: OT: Credit Card Rates To Double!
 

Crap, the 6k debt on my credit card is actually going to mean something now. http://forum.shrapnelgames.com/image...es/biggrin.gif I see this as a good thing (at least in my case) because it forces me to pay more than the minimum and actually have some hope of eventually paying the card off. http://forum.shrapnelgames.com/image...ies/tongue.gif

Re: OT: Credit Card Rates To Double!
 

The worse thing is, your not spending beyond your means, and have more than enough money at the end of the month. You always pay way over the minimum payments, x 3, and have never been late. Your credit score is near 800, and things are going great. ENTER - some bad economic times, chines swamp the market you work in, major health problems, and ONE, count it, ONE late payment, by ONE, and only ONE day, right after the anthrax mail scare that shut down the east coast, and the TERM "Universal Default" and presto...... all your interest rates tripple or quadripple, and suddenly that $35 minimum payment is now $120.00. Mulitiply that by each card you have, say four, and well, there goes your savings first, then your credit.

Like I said, cusomers NEED protection. If the mail had not been delayed by six days, who knows. One thing is for certain, this "universal default" policy must be made illegal for it is utter extortion and can ruin your ability to pay all because of mail snafu.

Re: OT: Credit Card Rates To Double!
 

I have been spoiled by my credit union.
Never a great deal but always a fair deal with no horrible hidden charges.

Since it is a "not for profit" organization, I get bonuses at the end of the year based on Interest paid and Dividends earned.

Oh yea, I just pay the damn card off about twice a month.
The C.U. is just down the hall from the company crapateria.

BTW: Read the fine print on those 0% offers. Closing the account early may trigger charges.