For example: I have a store credit card that charges me 26% interest and another that charges only 12%. I have always thought that stores could not charge more that 21%.
2007-01-29 08:27:46 · 7 answers · asked by krodgibami 5 in Business & Finance ➔ Credit
You ever wonder why the credit card companies are all based out of Delaware? It’s because that state has no law capping interest rates, so they can charge you 50% interest if they wanted. even if you get the store card in a state that caps it, if the company is based else wear , the company gets to charge the interest rates for that state. There is no federal law prohibiting it either, or one that caps it either, but they were are trying to pass one that cap’s it at 30% last year, but it failed. store cards, and gas cards, in general, almost always have rates that go into the 20's or higher
http://www.bankrate.com/brm/news/cc/20020814f.asp
http://www.pbs.org/wgbh/pages/frontline/shows/credit/eight/
http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=109&session=1&vote=00020
2007-01-29 08:53:32 · answer #1 · answered by Jen 5 · 0⤊ 0⤋
In the state of Connecticut, anyone charging more than 18% interest,OTHER THAN A LENDING INSTITUTION, is guilty of usury. I suspect that whether or not there is a cap on the percentage of interests they can charge, varies from state to state.
If you want to save yourself a lot of trouble, and a lot of money, you should get rid ot your credit cards. They are legal loan sharks. If you don't have the money to buy something, you can't afford it. The only exception is real estate, which is an investment.
Credit cards are for suckers. Cash rules!
2007-01-29 08:35:52 · answer #2 · answered by iraqisax 6 · 0⤊ 0⤋
I think the federal government sets the limit, 26% sounds high. Have you been late on payments? Call them and find out, they should be able to explain. Also, if you have been paying on time and have established a good payment history sometimes you can call and ask for your interest to be lowered. Sometimes they will do that for good customers, but they wont offer it to you, you have to ask.
2007-01-29 08:38:04 · answer #3 · answered by gymfreak 5 · 0⤊ 0⤋
Hi,
Go to see this web site: http://www.gotoinfolink.com
They have a section about the ''low interest credit card''
Hope this help ;-)
Jeff
2007-01-29 08:51:00 · answer #4 · answered by jeffl27 2 · 0⤊ 0⤋
As long as it is a private company, it can charge whatever they wish. And it is your right not to use or carry that card. Capitalism.
2007-01-29 08:33:04 · answer #5 · answered by Super Ruper 6 · 0⤊ 0⤋
22.9% Unless you are late, or missed payments, or broke rules about minimum or maximum monthly activity. Then they can charge more.
2007-01-29 08:35:05 · answer #6 · answered by Tim 6 · 0⤊ 0⤋
the interest rate laws vary from city to city,.a fixed rate is not the law,.
good luck,.shop around for better,..,
2007-01-29 08:34:43 · answer #7 · answered by Anonymous · 0⤊ 0⤋