....that's what mine went up to, it seems somewhat ridiculous.....
2006-12-07 04:20:44 · 14 answers · asked by im always right ya know 1 in Business & Finance ➔ Credit
That is how the credit card companies make their money. Actually, that is somewhat low, some go up to 20 some % for people with poor credit. Pay off your credit card balance each month and you will not have to worry about it.
2006-12-07 04:23:33 · answer #1 · answered by BG 3 · 0⤊ 0⤋
Yes, that is a high rate. Anytime you pay more interest than you can earn in a savings account, it's high interest according to some. To others, it's all in a day's business at the bank.
In the last few years, laws changed in South Dakota and Delaware to say that credit cards no longer had to stick with a cap of 12 percent interest. Along with that, a federal law was passed that said interest rates could be determined anywhere in the country and then imposed on all accounts in the country, regardless of any local laws to the contrary (known as usury laws, which originally capped interest rates on loans).
Because of these laws, many credit cards have rates in the 20s and 30s, especially the default rates (rates imposed if the cardholder falls behind in payments). And even the regular rates can be changed at the company's whim.
So, we have ever increasing rates imposed by the credit card companies, and it doesn't even take a poor credit rating to experience an increase in the rate on a credit card.
Shop around for a card with a lower rate if you are carrying a balance. The best would be if you could take advantage of a balance transfer that has a "rate until paid off" to a card that has no current balance on it. I have seen such offers at 6.9% and lower.
Another thing you might do is take out a personal loan or a secured loan against some form of property (collateral), usually a car, which is at a flat rate of interest, has no prepayment penalty, and has monthly terms you can live with. Make payments as if the balance is killing you! Double or triple them if you can. Along with that, save for your purchases instead of charging again. If you borrow somewhere else, and then use the card again to carry a balance, you are only kidding yourself and treading water in the credit card whirlpool.
2006-12-07 05:15:49 · answer #2 · answered by brightpool 3 · 0⤊ 0⤋
Not exceptionally high, but not exceptionally low, either. Some go as high as 30% some are as low as 5%. I'd say 14.74% is on the high-average side. It "went up to" it, I'm assuming, because you missed or were late on a payment or went above your balance. You can possibly call your credit card company and ask them to reintroduce your old rate. Some will make you wait a delinquent-free 6 to 12 months (depending on the lender), then you can call back and ask for it again. In the mean time, make sure you make payments on time in the future, and keep your card below max, and they may lower your rate.
Good luck!
2006-12-07 04:27:10 · answer #3 · answered by Maber 4 · 0⤊ 0⤋
Pay off that credit card if you have one and get rid of it. They are the worst financal decision you will ever make. Sure you can pay it now but what if an emergency comes up and you just got to use it, soon enough you use it more and more and pay less and less and soon enough you are in debt. Just steer clear of them they are bad news and credit card companies are the worst people to start business with. That may be the rate now, but they change it constantly.
2006-12-07 04:27:07 · answer #4 · answered by Grand Master Flex 3 · 0⤊ 0⤋
It's high, but i have heard of higher rates. A friend of mine who has good credit had his go to 22%. However if you want to keep a good credit record you should really not keep balances on your card, and if you have to, dont keep them too long. Just think that keeping balances on that card is costing you big bucks that you could be saving.
2006-12-07 04:23:59 · answer #5 · answered by GOP 2 · 0⤊ 0⤋
hi, think economic enterprise A provides a credits card with an annual proportion fee of 14 proportion. economic enterprise B provides a credits cared with an annual proportion fee of 18 %. economic enterprise A costs an annual fee of seventy 5$. and economic enterprise B costs no annual fee. which might you elect ? why ?
2016-10-17 22:50:36 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Do not use credit cards, use a debit card and save up the money to buy things.
2006-12-07 05:09:41 · answer #7 · answered by iraqiwildman 2 · 0⤊ 0⤋
Not high, wherever you may be. Extremely good rate if you are in some developing countries.
2006-12-07 04:25:21 · answer #8 · answered by mms 2 · 0⤊ 0⤋
average, depending on your credit report it mostly is between 10% and 20%
2006-12-07 04:22:31 · answer #9 · answered by naddel 4 · 0⤊ 0⤋
No, that is average for most people unless you have excellent credit.
2006-12-07 04:25:24 · answer #10 · answered by Anonymous · 0⤊ 0⤋