2006-12-17 23:13:50 · 2 answers · asked by Shirrwood 2 in Business & Finance ➔ Credit
A credit card usually has an interest rate based on the prime rate, and this may be "capped" at say 21%. However, this has nothing to do with the penalty rate. Miss a payment or exceed your limit, and they can jack your rate up to 30%!
That's why when you get your credit card statement, the address is in South Dakota or Delaware....there are little or no caps on how much interest they can charge in those states :)
2006-12-18 01:08:16 · answer #1 · answered by Kevin K 3 · 0⤊ 0⤋
a credit fee cap, is the max amount that that fee can reach, cap is used as a term meaning that's the max amount, or that's when it will stop rising example " my credit card fee will cap at 7.00 in 3 years" or "the cap for my interest rate is 6.00%" thus it will not raise past the pr determined amount that the creditor has set it at.
2006-12-17 23:21:00 · answer #2 · answered by stickyn1 2 · 0⤊ 0⤋