OT: Credit Card Rates To Double!

Captain Kwok · #1 July 26th, 2005, 06:36 PM

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.

RCCCL · #2 July 26th, 2005, 06:39 PM

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.

El_Phil · #3 July 26th, 2005, 06:55 PM

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?

ToddT · #4 July 26th, 2005, 07:23 PM

Quote:

El_Phil said:
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?

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.

Zen · #5 July 26th, 2005, 07:48 PM

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.

Xorkh · #6 July 26th, 2005, 08:37 PM

Crap, the 6k debt on my credit card is actually going to mean something now.

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.

Atrocities · #7 July 26th, 2005, 09:40 PM

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.