Credit Card from 6.9% to 24.25%

[RSKY]

First you need to set down with a calculator and figure up how much the interest costs you when you carry a balance. Then you will pay off all your cards. I use credit cards to pay for everything I buy, but I NEVER carry a balance. I work too hard for my money to just give it away. And when you carry a monthly balance on any credit card that is what you are doing. You are giving away your hard earned dollars to a large bank for no gain to yourself.

I met a guy in 2003 that had an outstanding balance of $128,000 on more than twenty credit cards. I forget the exact number. He and his wife would get a letter in the mail and get the card and max it out. They had a combined income of less than $100,000. Interest was something like $25,000 a year. I owed nothing to anybody for anything at the time and he could not understand why I got a car loan and the bank would not loan him money to pay off his cards. He was really upset and could not understand the unfairness of the situation.

I left the bank and got in my 1993 pickup and waited to see what kind of car he had. He got in a fairly new looking Dodge pickup truck.

 

[OkeeDon]

I got rid of all my credit cards and use a Visa debit card linked to my checking account. It looks like a credit card, functions like a credit card when the merchant is not set up for debit cards, and substitutes nicely for a credit card for reservations, car rentals, aitline tickets, online purchases, online bill paying, etc. I never have to worry about paying off a balance -- the money is already in the checking account when I use the card, or I simply don't make the purchase. It has solved all sorts of problems. I do have to keep a decent "pad" in the checking account to cover emergencies, but it's easy now that my bills are lower...

 

[BigDave]

</font><font color="blue" class="small">( She tells me they're looking over my credit report and I've crossed some threshold for my income to debt ratio. )</font>

How do they know your income level?

 

[DocHeb]

You report your income level when you apply for mortgages and credit cards.

 

[Henro]

<font color="blue"> There was an interesting interview on PBS Frontline awhile back regarding credit card companies and how all this worked. A portion of the interview can be read HERE along with other valuable info. </font>

Madref,

That was a good read. Thanks for posting the link.

I just realized that I don't know and never cared what the my credit card interest rate was. I always just assumed it was out of this world and never, ever. in over 25 years, paid a single cent in interest, being a natural born deadbeat! /forums/images/graemlins/shocked.gif

I would do the same as OkeeDon, except that I like getting $150 or more back from Discover Card each year. We use that card for EVERYTHING and doing so does give a small reward, that otherwise we would not see. <font color="blue"> </font>

 

[Bird]

I'm much like you, Bill. I have a MasterCard that I used once last year, for the first time in many years, just to see if it was still active (it was). I have a Visa from another bank that I use only when paying at a place that does not accept Discover Card. I have a MasterCard debit card that I only use for ATM machines, and very rarely. Everything else is on the Discover Card, and of course, paid in full every month.

 

[Jackrabbit_Slim]

I'm not sure how it works in the US, but up here, you pay interest on the maximum amount you've run up on the card. For example, if someone had their card up to $3,000, they'd be paying about $100.00 a month as a compulsory payment. About $45.00 of that (at around 17% interest) is going to pay for interest. So, after getting the balance down to say, $1,500, the consumer is still paying interest on the full $3,000 and will until the entire balance is paid off. Looks like it's a lot easier to be bandit with a briefcase than with a gun.

Slim

 

[JDGREEN4ME]

I posted earlier that I had no problems with Bank One...WRONG. Just received my last statement and my rate went from 7.9% to 29.49%. I called to see what the deal was and was told it was due to negative information received from Equafax. Today I called Equafax and was told there were no changes in my credit. Everything is fine and they did not post a single negative in regards to me. Further they went on and let me know that they have no record of any contact with Bank One. We have money in savings to pay off what we owe if we can not get this fixed but do not want to do that. Just sent a request to B1 to clarify what the **** they are talking about! /forums/images/graemlins/mad.gif /forums/images/graemlins/blush.gif /forums/images/graemlins/shocked.gif

 

[slowrev]

In todays business world something is wrong only if you get caught.

 

[Junkman]

I had about 4 cards from MBNA and I used each card for a different purpose. One day, I got a call from them wanting to consolidate the cards into one. In a weak moment, I agreed. When the new one card arrived, it had a 6 month expiration date. At the end of the six months, they canceled the card saying that the credit limit on that card was too high. I always paid all my cards on time and in full. Now, I have one credit card and two debit cards that I use. What was interesting is when I rented a car when in Florida, they car rental company insisted on a credit card, not a debit card that was being used as a credit card. Luckily I did have my one credit card with me.
Sure am glad that they are charging high fees though... it keeps my bank stock price growing. My Fleet stock just converted to Bank America. Anyone know if they are a high interest credit card issuer???? /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif