What is the maximum allowable APR on credit cards?

Question

My credit card interest rate was jacked up to 29.99 percent when I was late paying the bill. What is the maximum allowable APR on credit cards?

Answer 1

Thank the Reagan Administration.

Almost every state has usury laws, that cap the amount of interest a bank can charge you.

However, in the 80s, the federal government exempted all national banks from these laws. So, most likely, your credit card can legally charge basically as much interst as they want. Don't look to the government for help.

However, I would suggest calling your credit card company, explaining that this was your first late payment, and asking them to waive the late fee and upped interest rate. If you have decent credit and can take your business elsewhere, it's likely they will comply.

Also, watch your other credit cards. Some credit cards check your credit report and if you are late with a totally different card will jack up your rate.

-->Adam

Answer 2

When congress removed the Usery Laws - there is no cap......but what's worse......is Universal Default - if the other credit cards find out (via random credit checks) and discover that you have screwed up on another credit card, they too can and will raise your interest rate thru the roof......it is more important than ever to keep your credit cards a priority until you can pay them off.

In fact, if a credit card determines that a holder has used up a lot of their total available credit, they can and will gleefully raise your rate as well (even tho there is no negative activity).....

You just can't carry balances long term anymore.

Answer 3

Whatever they want.

I would suggest finding a new card with a lower APR, and transfer your balance. Some cards even offer 0% interest on balance transfers.

Answer 4

Take a look at this information page http://www.youbigg.com/Credit-Cards.html it lists types of cards and information, it should also answer your question.