2006-10-26 07:05:24 · 12 answers · asked by dnelak 2 in Business & Finance ➔ Credit
Yes they can if you're speaking in terms of default charges. It is possible to end up owning the credit card company well over two times the original limit on the card. Crcd companies can raise your rate at the first sign of default. Remeber that almost all rates associated with credit cards are compounding on a monthly basis. This means that your balance will skyrocket very very quickly. Combine high, compounding rates with late charges and other fees then they sky is the limit on your balance! Of couse, the card will end up charging off someday and the balance will eventualy stop increasing. This is the problem credit cards and the people who are unable to understand and use them in a controlled manner.
2006-10-26 18:51:16 · answer #1 · answered by Abbi G 2 · 0⤊ 0⤋
Yes. As a matter of fact, they can. Usually the interest charges are on a monthly compound basis. This means if you purchase 100$ and interest is 20$ on 100$; next month interest will be 24$ charged on total 120$. This way the amount will keep multiplying till you manage to pay off if full.
It is always advisable to make total payments of the credit cards which you have before the due dates.
2006-10-26 10:52:31 · answer #2 · answered by blossombaby84 2 · 0⤊ 0⤋
Yes the credit card company can charge you more in interest than money you charged on the card. For example, if you purchased 100 dollars worth of goods on your card and your card had a 30% interest rate, it would only take you 4 periods for you to have a 120 dollar interest payment on top of what you already charged.
2006-10-26 07:10:15 · answer #3 · answered by Michael L 1 · 0⤊ 0⤋
I'm not sure I understand your question.
If you're asking if you charged $100 on a credit card, could a credit card company charge you $100 in interest?
If so, then the answer is 'no'. That would mean that their interest rate is 100%.
Scott.....
2006-10-26 07:09:09 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The correct method of calculating interest is as follows:
The unpaid balance multiplied by the apr ..... then divided by either 360 or 365 ..... then multipled by the number of days in the billing cycle.
The 360 or 365 is the number of days in a year. The FRB, FDIC etc allow either the use of 360 or 365 in that calculation.
This is the method to find out the amount of interest charged on all debts that are interest bearing - meaning the balance does not already include the interst. Those debts are called pre-computed.
2006-10-29 05:17:28 · answer #5 · answered by chey_one 3 · 0⤊ 0⤋
It depends on the amount you charged, and the terms of the card. Some may have a minimum finance charge each month, too.
2006-10-26 07:13:11 · answer #6 · answered by Ralfcoder 7 · 0⤊ 0⤋
Not unless they charge more than a 100% interest rate.
2006-10-26 07:07:46 · answer #7 · answered by Anonymous · 0⤊ 0⤋
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2014-09-03 06:57:57 · answer #8 · answered by Anonymous · 0⤊ 0⤋
No, there aren't any lending organizations out there that I have heard of that have a 100% interest rate. Except maybe for your neighborhood thug loan shark.
2006-10-26 07:39:02 · answer #9 · answered by CaveCat 2 · 0⤊ 0⤋
yes and the interest and late charges can and will compound; sometimes you can get them to waive the interest depending on he circumstance
2006-10-26 07:08:26 · answer #10 · answered by sml 6 · 0⤊ 0⤋