Credit Cards , Are they really out to get you ? What do you think ?

Question

They have become much more treacherous to Consumbers .
1.
By imposed intrest rates in excess of 30% on customers whoes only offense might be a late payment to another creditor .
2.
Reduced grace periods when new purchases are free of intrest . 3.
Lobbled successfully to Congress to weakenprotactions for , cardholders.
4.
Lookup in Consumers Report page15 to learn what you can do to protect yourselves . And call your Congressperson and complain about it ..

Answer 1

We've been complaining for years about this but nothing has been done. In fact congress keeps putting laws in which are against the consumers. It's time, or past time, that we stand up and complain. But it doesn't seem to work just telling the representatives, senators and congressmen...we need to think up some other way.

Answer 2

One of the first cards I got -- MBNA -- has this clause wherein interest is calculated on the day you used the card. Most cards have a grace period. So if I use the card now and pay for the amount I owe in full, I still have to pay interest on it. Worse, next month, even after I paid in full, I still have to pay interest rate again. If I don't pay the amount in full, they'd be sooo happy with the accumulating interest rate charges.

They only stopped when I complained threatened to sue them. I never used the card again. Too bad I can't cancel it because it is the first card I got so it gives me the longest credit history (I'm an immigrant so my having a short credit history is always a point against me).

Answer 3

Yes they are out to get you...so you have to play the game with them too...I have unfortunately gotten into some issues with them. When I was 19 Discover gave me a nice $15,000 limit so what did I do...? That's right racked it...I have since gotten more and have been able to manage them very well as not to mess up my credit but I do play games with them too...negotiate your rates. There is a lot easier way to build credit and that is a car loan or lease (if you can lease) credit cards are evil...unless you pay them off every month and only use them for emergencies.
The reason I closed my Discover was because they changed the terms of the agreement and it stated that they can evaluate your account at any time and make changes to it including the fixed interest rates...if that's not trying to screw you I don't know what is...Bank of America tried to change my 9.9%fixed to a 12.9% variable and almost slipped it by me till I called and complained their excuse was it was a study/test...yeah to see how dumb their customers are!

Answer 4

You have to realize, the whole game of issuing credit is predicated on the principle of PROFIT, PROFIT, PROFIT. Lending money is a BUSINESS and it is a very risky business at that!

Everything you mentioned is correct, but if you don't like the credit game, then except for your mortgage, pay your credit card balance in full when it is due and you can avoid all of this foolishness.

If you don't like the rules, you have the right NOT TO PLAY. And if you don't PLAY, then you can't get burned.

You do not have to frequent businesses you feel that do you more harm than good! That is your right as a consumer.

It is as simple as that.

Asking our Congressman to regulate how creditors treat us after we have needlessly indebted ourselves is not a very proactive way to get our financial house in order.

Answer 5

Credit Card Company's are a business just like any other and are in the business of making money. It is unfortunate that the type of business they practice is putting America in serious debt. The only way to deal with this type of business is to make the choice not to participate. Get rid of the cards as soon as possible and never apply for another as this is only going to get worse. Oprah .com has a great debt diet plan that can really help you get rid of the cards, get your interest and payments lowered, make payment arrangement etc. Lots of good advise. Bottom line we lose they gain, kinda like gambling.

Answer 6

Credit card companies will suck the life out of you and they intentionally prey on society's most vunerable. I have credit cards but only for emergencies or special projects (just to keep track of costs). If I do use them they are always paid off before the due date. In fact, I like to keep a small credit balance (just a couple of dollars) on my account. That forces the credit card company to mail me a statement every month which is an expense to them. Just my small way of spanking them for their bad behaviour.

Answer 7

Of course they are.. they are in business to make money. They aren't operating for charity. However if you pay your balance off in full each month, and always make sure to make your minimum payments you *can* minimize ugly things from happening. Credit card companies aren't keeping any secrets from anyone, most people just fail to read the contracts/fine print and Terms of Service...............

Answer 8

Well, you can always pay cash, pay the balance each month, or get some cards with a better APR. I'm paying 2.99% on some of my cards.

Somebody will sell you a car a sticker price if you don't ask or look for a better deal. (And they'll take your car back from you if you miss the payments.)

Answer 9

Yup, the magic of compound interest. Funny how nobody sees it coming.

Having money in the bank is a whole heckuva lot more fun than any consumer product you can buy.

Do yourselves a favor and pay off yours & cut them up.

Answer 10

you may want to look up a very good documentary from PBS...Frontline....www.pbs.org/frontline (go to the title called The Secrete history of the Credit Card)

YUP--if you leave a balance on your credit card at the end of the month your credit card company will try to get an arm and a leg from you