Credit Card Poll

[hardflex]

Saw this article today online, and wondered what percentage of people have had the interest rates on the balance bumped up unfairly by credit card companies.

http://news.yahoo.com/s/usatoday/20080208/cm_usatoday/ourviewoncreditpracticescardissuersinvestindc

a portion of the article.....

Bank of America for example, is raising rates on some cardholders, even responsible ones who typically pay their bills on time, USA TODAY's Kathy Chu reported Thursday. Other issuers have shortened grace periods or hiked already record-high fees.

In fact, under existing law, card issuers can raise rates "at any time, for any reason." As for fees, the sky's the limit.

For years, banks have gotten away with such practices because they've known how to invest their money — or should we say, your money — wisely:

* In the past two decades, employees and political action committees of three of the nation's biggest credit-card issuers and their trade association have lavished more than $74 million on candidates in federal elections and political party committees.

[Porsche-O-Phile]

There's also nothing stopping you from taking your business (and balance) elsewhere if you feel like it.

[old man neri]

Never ever use a credit card as a source for a loan. It is just a convenience, if you buy something with it you should have the cash elsewhere to back it up.

So many people in school I saw racking up big debt on credit cards thinking it was the way to do things. So sad.

[peppy]

I use my bank card for most purchases.
I made my wife pay all cards off when we got married and we do not keep a balance.

[Porsche-O-Phile]

I laud you both although I'm not quite 100% there yet. We're still paying off some things from a very nasty layoff and rebuilding process a few years ago. We're close, but not there.

Writing those "close my account and good riddance" letters when you reach a zero balance is one of the little joys in life that makes it worth living. At least for me.

Hopefully by the end of this year the only debt we'll have is my student loan and one car payment. Not bad I guess.

[djmcmath]

I took out a $20K loan on my credit card several years back on one of those "Convenience checks at 2.9% interest!" deals. It's fantastic. See if you can find a 2.9% unsecured loan anywhere else...

But no, they haven't raised my rates, and that's the only card I use.

[hardflex]

Well, the point of this was to see how widespread the abuses are. I am curious.

My Stepson and his wife are in some Credit difficulty. 30+ percent is pretty punitive interest, IMHO

[schamp]

Capital One tried that on me. I called to inquire why they went from 5.9 to 15.9. No reason other than they could. Never late, never even close to the limit. I paid it off. Called to close the account and the offered to go to 9.9. I told them I did not want them in my wallet. I thought it was quite funny. They didn.t Tranfer to another card or the best is to pay it off.

[Hugh R]

Until recently we carried way too much like $10K, paid it off and will never carry a balance again.

[David]

I used to have 6% cards but they've crept up to almost 10%. I'm curious what others are paying since I think I'm an ideal customer. I always seem to have a few thousand dollar balance, but when it gets to high, I pay most of it off. My only glitch was a couple years ago they canceled my automatic bill pay which I set up to make I'd never miss a payment. I missed a payment and they raised it to about 16% and I didn't catch if for a few months. They lowered it back after I complained.

[masraum]

We have a 2.9% balance transfer until the balance is paid off on one. If we're ever late for a payment I'm sure it'll go to something closer to 25%.

On my keeper card, it's actually gone down over the years. When I first started when I was 18 it was 15.9% back when almost everything was 19.6%. It went down to 12.9, then 9.9, and most recently, I noticed the website said 7.9% so I called to ask if they'd lower from 9.9. She lowered my rate on the spot. Credit Unions kick butt.

[masraum]

We currently have 3 credit cards (not counting gas cards). We used to have 8 more than we have now. Some of those 8 did raise rates from time to time.

[onewhippedpuppy]

Never carried a balance. If I can't pay it off, I don't buy it. Never even had a credit card until my wife added me to hers after we were married, a debit card always treated me just fine. I've seen it happen to others, getting behind on credit cards is scary as hell.

Personally, I think many of their business practices are very shady. In reality, very few people really NEED a credit card, and most would be better off without them.

[gprsh924]

The only reason I have a credit card is so that I can build credit for myself...although I use it is if it were a debit card, if I don't have the cash, I don't buy it.

[David]

Originally Posted by onewhippedpuppy

In reality, very few people really NEED a credit card, and most would be better off without them.

How do you do mailorder or get a hotel room without one?

[VincentVega]

Thanks to this thread I checked the rates on the 2 cards I use on a regular basis. I never carry a balance so never thought to look. My visa is now 10.24%, I thought it was 9.9%. 30% would have me working 2 jobs and eating raman to get it paid off.

[TerryH]

Capital One is odd. They raise rates on nothing but a whim. I had two of their cards for 10 years. For no reason they raised the rate from 6.9 to 11.9. First on one, then 2 years later, the other. Our credit score is around 800, so I'm not sure what they base the rate increase on. I have a AAA visa that is still 7.9, so good rates are still available.

[TerryH]

.... and this thread reminded me of this offer from Capital One I received a few days ago. Seems they've noticed my spending habits no longer included their card. LOL!

[Sapporo Guy]

Geez, you guys are whinning about 15% ... try 18.9% for a frigging card that isn't penalizing you for anything. This is just standard over here.


This raises an interesting question.

They teach economics in school but nobody teaches "real" economics of life.

What is wrong with the educational system !?!?!?!!?!

I, like many other youngsters at the time, found myself in credit card heaven. Short on cash, plastic was always by my side. A wonderful partner. Beer money was in my pocket because plastic paid for things I needed.

I even today have to check myself and remind myself to keep to the 1-2 month payoff so that I don't have to pay interest. I could pay cash but cashflow is at times more critical than trying to keep a zero balance.

But, as an educator, I try to inform my kids on what it means to pay income tax, social insurance before they get their paycheck in hand. I also try to inform them the benefits or being paid first, pay government second. The idea of cashflow. And of course, the reality that a house is and always will be a liability rather than investment vehicle.

However, they look at me like I'm crazy. Nobody arounds them understands "money" especially their parents. So, it is hard to teach them something that nobody understands.


Eventhough, Robert Kiyosaki seems to be a fraud, he does have some good points and it is because of him and Dale Carnegie I was finally able to awaken to mistaken way of "money" life.

It is a hard journey to change 20+ years of life and I am very angry that the educational system and parents have put me through hard times.

Calculus and Physics can't help you when you are debating on buying a new 42" plasma ...


I wonder if the government keeps it this way :angry:

[pwd72s]

I'm a "deadbeat"...Credit card company lingo.

That's one who avoids their usurious interest charges by paying in full every month while still using the benefits they offer. If they change, I could always carry cash, though it would be less safe when carrying cash for large purchases. Also, the card is handy for making phone orders.