Credit Card from 6.9% to 24.25%

ByronBob · Feb 22, 2005

Nice way to treat people huh? That's fine because places like this spread the word way more than I could any other way.

When I canceled the card last week they didn't even ask me why. I imagine they know.

Junkman · Feb 22, 2005

Don't feel bad about the way they treat you the customer. I was on the phone this morning with our credit card processor and they informed me that our discount rate was going up ten points.... that translates to 10/100 % more. Now that might not sound like much money, but when you add that into the past raises of .06 every six months for the past 2 years, it adds up quickly. He told me that it is the goal of Master Card and Visa to get there rate up to that of American Express.... 3 1/2%. This means that for every $100 that you charge, the credit card companies will receive $3.50 plus whatever the per item fee is. This can vary from $.05 to $.35 per item. 3 1/2% per ticket amounts to a annual rate of 42%. The banks and credit card companies are making there money the old fashioned way.... They Steal It From You!!! /forums/images/graemlins/mad.gif /forums/images/graemlins/mad.gif

slowrev · Feb 22, 2005

Junkman,
These fees raise the prices of the products for everyone, not just the ones who buy on credit /forums/images/graemlins/frown.gif
So those of us who do not use credit cards are subsidizing the ones who do. Would this be socialistic capitalism ???

Ben

Wingnut · Feb 22, 2005

As Ben pointed out ... we all pay the same price ... the merchant is not allowed to offer a "deal" for cash .... so .... I don't use cash.
I have several cards that "give back" based on annual or quarterly purchases ... Discover and my MBNA card are both at 1% but I'm looking at trading the MBNA on a gas/grocery/drug card that will pay back 5% on those purchases.
Since I get a "rebate" by using the card ... and no credit for not using credit (sorry, couldn't resist the pun) ... plastic is the way I go .... anytime I have a choice!
However!!! I do make sure I'm not PAYING for that rebate!!! I have not paid an interest charge in pretty close to 20 years .... so I don't care what the interest rate on my plastic is ... they could make it 100% and it wouldn't bother me.
A long time ago, I sat down and did some "what ifs" on a spreadsheet ... and decided then and there that interest was something I had NO interest in!

just my .02 ... capital only!

PitbullMidwest · Feb 22, 2005

They are all theives. I had cards from Chase and Providian. Last year I received a letter that Chase had purchased my account from Providian and that future payments should be sent to them. The first bill from Chase/Providian showed the interest rate was raised to 29.98% yet the rate on other Chase account stayed at 2.9%. I called to find out the reason for the increased rate and was told that after reviewing my poor payment history with Providian, I was considered a high risk. Poor payment history? I never missed a payment and made copies of the previous year's statements and mailed them to Chase.

Chase's response was they may have made an error but it is their policy to only review account rates every 6 months. I asked if that meant they wouldn't raise my rate if I stopped paying? No, they just wouldn't review it to lower it.

We paid both cards off and will not do business with Chase again.

OkeeDon · Feb 22, 2005

"...and decided then and there that interest was something I had NO interest in!" 

My wife carried the idea a step further -- she's decided that interest was ordained by God to be paid TO her, not BY her.

frank_f15 · Feb 22, 2005

( They are all theives )

YOU HIT THE NAIL SQUARE ON THE HEAD! I use CC strictly for my convenience, especially when traveling and then pay it off. The fine print is where they get you, be late one time and the rate goes from 6.9% to 21% or higher.