How high can a credit card company raise your interest rate? Is there a legal limit or a place I can find out?
Thank you!!
2007-02-26 06:52:23 · 6 answers · asked by Ann 5 in Business & Finance ➔ Credit
The highest interest rate a credit card can charge you in the United States is 33.4%. None of them start out like this, but every credit card is easy to screw up! Here's why:
If you make one late payment on your credit card, by law, they are allowed to bump you up to a higher (in most cases, 33.4%) interest rate because you are now a 'high-risk' customer.
What's worse, is that if you make a late payment on ONE card, by law, EVERY card is allowed to bump your rate up to the 33.4% default rate. Criminal, right?
I wish I were kidding. You can read more about it on BankRate.com's website... they're a very trustworthy source. Here's BankRate's article on Universal Default Rates:
http://www.bankrate.com/brm/news/credit-management/20040120a1.asp
2007-02-26 07:05:48 · answer #1 · answered by Kris 3 · 1⤊ 0⤋
A company can set a rate as high as the state the company orginates from will alllow. For example, if a loan company such as World Finance, Gold Star, etc. (small loan shark companies) is in Mississippi and Mississippi has a max out rate of 30% but the companies headquarters is in Montana and the max out rate there is 52%, the finance company cam charge the 52% arte because it is based on the law where the company is headquartered.
2007-02-26 15:56:01 · answer #2 · answered by moonlillies 3 · 0⤊ 0⤋
I believe our INACTIVE government once again has side stepped this issue... It is now common place for CC companys to charge up to 32% on default accounts.... oh and they make it sooooo easy for you to default.
btw: they used to arrest peeople for charging another person 25%...it is called loan sharking
2007-02-26 07:02:43 · answer #3 · answered by Robert P 6 · 0⤊ 0⤋
I suggest checking with the provider, but should not be more than 28%.
www.letsgobble.com
2007-02-26 06:57:10 · answer #4 · answered by chase11209 2 · 0⤊ 0⤋
Im not completely sure .....but prolly as high as 35-40 %
2007-02-26 06:56:25 · answer #5 · answered by stunna3m 3 · 0⤊ 0⤋
usarage rate (SP) and it varies by state, I think Ohio is 25%
2007-02-26 06:58:18 · answer #6 · answered by Jeremy B 2 · 0⤊ 0⤋