People max out their cards and wonder why their interest is raised!

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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fffresh
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People max out their cards and wonder why their interest is raised!

Postby fffresh » Tue Jun 10, 2008 6:16 pm

I was watching a program on PBS about credit cards and these people were wondering why their rates were raised out of the blue. lol what is wrong these people, they carry balances of $9,500 out of a $10,000 credit limit and then they wonder why the credit card company ups their interest? how hard is it for them to realize that if someone is using nearly all of their available credit, that's risky. it's like someone who's spent all their money in the bank and doesn't have a job. they only have so much more to spend! These people would have been much better off and probably avoided any interest rate hikes if they just kept their balances below 30% of their credit limits on the cards. They Should have split up the balances on different cards if they had to in order to do this.


magyar1045
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Postby magyar1045 » Wed Jun 11, 2008 3:04 pm

The credit card companies who do this bite themselves. By constantly increasing interest rates these creditors will soon find themselves with consumers not being able to pay even the minimum payments. They will be defaulting and running to bankruptcy attorneys and file bankruptcy. Then they will lose a heck of a lot more than they had been had they not increased the interest rates to loanshark levels.

Roni
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Postby Roni » Wed Jun 11, 2008 7:55 pm

magyar1045 wrote:The credit card companies who do this bite themselves. By constantly increasing interest rates these creditors will soon find themselves with consumers not being able to pay even the minimum payments. They will be defaulting and running to bankruptcy attorneys and file bankruptcy. Then they will lose a heck of a lot more than they had been had they not increased the interest rates to loanshark levels.


But I totally get why they're raising rates and most of the creditors (I said most not all) won't just raise rates out of the blue. There has to be something the triggers it like too high of balance, late payments, etc so I blame the consumer just as much. Plus you can always transfer balances if they were raised and you have good credit. With nearly all credit card companies if the consumer is responsible and pays all their bills on time their APR will not be jacked up unexpectedly probably would move a percent or two along with the Fed rate since it is revolving credit but other than that nothing major.

I wouldn't be where I am in life today if it weren't for credit cards making it possible. I think they can do us a lot of good when we use them responsibly. You know Google was financed with credit cards and look at them now. Many people use credit cards when they have no secured loan options available. Instead of everyone sh*t talking the credit card companies why don't they start acknowledging the good they do too. I get people have bad experiences like they do everything in life but I think they're more good than bad. Look people have problems with doctors, hospitals, colleges, food, cars, does it mean they're bad? No it's just part of life.

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Mogul of Pineapples
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PBS special with Ben Stein?

Postby Mogul of Pineapples » Thu Jun 12, 2008 9:22 pm

You talking about that PBS thing with Ben Stein on it. Did anyone see that Ben Stein is crazy. He took out his pocketbook, which he calls his third breast, to show how many credit cards he has. He had dozens and this was not a joke or parody he literally had like 30 different credit cards and he was going through a few to show why he has each. I noticed Diners Club Carte Blanche and some Chase and a few other non-exciting cards, but didn't see an Amex Centurion in there surprisingly.


If Ben Stein knows money and he wants us to follow his lead, then he's saying we should all have 30+ credit cards each LOL
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