Credit card rates at record highs near 15%

[The Straight Story]

Credit card rates at record highs near 15%

NEW YORK (CNNMoney) -- Interest rates are now hovering near record highs, at an average rate of 14.72%. And if your credit is bad enough, you could even end up with a rate as high as 59.9% APR.

That's because while the CARD Act helped crack down on certain fees and requires more disclosures, it didn't cap every credit card holder's worst enemy: interest rates.

Sure, the new rules prevent banks from raising most interest rates retroactively, but there's no limit on the rates they can charge new customers.

"Rates are going up because card issuers know that once you get a card they can't raise the rates, so they're raising rates on the front end to ensure they get the revenue from that interest," said Beverly Harzog, credit card expert at Credit.com.

http://money.cnn.com/2011/01/28/pf/credit_cards_interest_rates/index.htm?iid=HLMNot%20perfect%20credit%20=%2059%%20APR

[cbdo2007]

1. Mine is currently at 0% and has been for 5 years now.

[xchrom]

2. recommend

[SOS]

3. Borrow at 0.25%, lend at 14.72%

And without taxpayer money they would have been wiped off the face of the earth in September 2008.

In the 1990s we were informed that these chumps were the "Masters of the Universe".
In 2011 we see that they are nothing more than incompetent loan sharks.

Banking needs to get back to 3-6-3
Borrow at 3%, lend at 6% and be on the golf course by 3.

[Statistical]

5. The sad thing is even w/ 3% -6% split the potential margins are huge.

Say you borrow $1000 at 3%. Due to the magic of fractional reserves you can lend $10,000 at 6%.

Assuming no losses your gross margins are something like 60% on assets under deposit. Even with reasonable loss rates, overhead, and fraud you can profit handsomely.

Of course that requires tighter underwriting standards, you know actually doing some work. Not lend to everyone on the planet at insane rates and hope you come out ahead.

[Catherina]

4. Rec'd. But it's all hunky dory here I keep hearing. n/t

[hobbit709]

6. Last year just before the new law took effect

Chase decided to bump my interest to 31.99% even though I had never missed a payment, never been late , always paid more than the minimum and had a balance under 50% of the limit.
My credit union offered me a card with 0% for the first year and a maximum of 11.99%. I took it and transferred the Chase Balance to it. When chase asked why I was canceling my two cards my reply was "Because I can get a better interest rate from my neighborhood loan shark that what you want"
I now have only 3 cards with a total balance under $1500 on a credit limit total of $10K. Now that my mortgage is paid off, I expect to have the cards paid off within 3 or 4 months.

[CoffeeCat]

7. Wanna lose? Play ball with the credit-card companies

The credit-card companies can screw you over and do whatever the hell they want to you. They can charge
you 90 percent interest if they feel so inclined. These companies work day and night, trying to figure
out ways to steal your money funnel it up to their boardrooms.

Please, people--stop this nonsense. Do not own a credit card. We haven't had ANY major credit
cards for more than a decade. We have a mortgage, soaring credit scores and we just re-financed
our home and got the very best rates.

The lies about "needing a credit card to build credit" are a crock of shit. You don't need a credit
card----BUT the credit-card companies need you to put chains around your self and your bank account
and send them money.

Credit cards are unnecessary and they will only siphon off your hard-earned money. You end up paying
so much more for EVERYTHING, at high interest rates. Credit cards ENSLAVE YOU to the corporations.

Break the chains!!

[bvar22]

8. The "historic" regulations in HCR...

...and the "historic" Wall Street regulations are going to be just as effective too!!!
:party:

Smoke & Mirrors.

[AnneD]

9. I have the best rates imaginable.....

I have 0% interest, no minimum payment, no fees and I am limited only by what I have in the bank.

I like my terms better.

Seriously, when I clipped up my cards 7 years ago and paid off all my debts, I really started seeing an increase in my bottom line. I occasionally take out a signature loan, and pay it off within 2 months to keep a score. I did take out a car loan (for a recent 2008 used vehicle at my CU) and have accelerated the payments to get it over with.

Will I ever get a credit card? Not just know but HELL NO. I hope the CC companies go out of business. If I ever do take one it will be through my CU.