2006-09-02 08:11:51 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
Depends on the state that you live in. Have hear of rates as high as 30%.
Each state has laws that govern how much interest can be charged.
2006-09-02 08:19:37 · answer #1 · answered by WJVV 4 · 0⤊ 1⤋
There seems to be no max. The worse your credit rating, the more you pay. People who have a card maxed out pay about 29% interest. People who pay responsibly pay about 6 1/2% right now. 29% is like you pay 30 cents for every dollar every month. So if you owe 300 dollars you will be charged 90 dollars interest for the month and you can afford to make a payment of 25 dollars. You are in troub'ble. If you max out at 3,000 dollars, you owe 900 dollars in interest for the month. Uh Oh - you'll never pay this debt off. This is simplistic and scary so you get the point. DON'T charge it if you can't pay for it.
2006-09-02 08:20:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It depends on the state where the credit card company is located. That is why a bunch are in S. Dakota. The government there figured out that if they removed the interest limits (or went sky high), a lot of jobs would be created by cc companies moving in. It worked out real well for them. Not so well for the cc user.
The home state rules apply. This has been tested in court and upheld.
2006-09-02 08:30:36 · answer #3 · answered by veritas 5 · 0⤊ 0⤋
Some states have laws capping the interest rates and some don't.
http://www.bankrate.com/brm/news/cc/20020320a.asp
That article explains it in more detail, though it's from 2002 so usury laws could have changed by now.
2006-09-02 08:24:19 · answer #4 · answered by Vadalia 4 · 0⤊ 0⤋
there really is no limit
look up this great documentary
www.pbs.org/frontline (look up the History of the Credit Card)
2006-09-02 11:13:33 · answer #5 · answered by christiansareawesome 4 · 0⤊ 0⤋
Try the links in http://www.freewebs.com/efinans/
2006-09-02 08:36:26 · answer #6 · answered by Anonymous · 0⤊ 0⤋