credit card issuers increase the APR rate in outrageous rate
By kingparker
@kingparker (9673)
United States
February 13, 2010 11:13pm CST
It is absolutely insane, and outrageous if you apply for a credit card with a APR rate of 75.9%. That is the highest rate I ever seen myself, and personally, I won't never apply for such a card. That is totally rip - off deal. According to the Federal law, that is legal, and the card issuer can adjust their APR rate whatever they want. But if they change the terms and conditions, they should give the customers at least 15 days of notification, to let them decide whether they will accept it or not.
The credit card issuer defended themselves only impose such high interest rate on people who has really bad credit. That is one punishment for them to remember never overspend what they can afford. What do you think of it?
3 responses
@WiseReptiles (854)
• United States
14 Feb 10
I have seen this and the credit card company that is doing this has found a loop hole. I do not care how bad you need a credit card I would stay away from this one at all costs because it will cost you more trouble and misery in the long run than it was worth getting a credit card.
@kingparker (9673)
• United States
14 Feb 10
That is true, because you can't afford to pay the interest charge, do not even think about getting one yourself. That is a trap, and you won't be able to pay for it.
@WiseReptiles (854)
• United States
14 Feb 10
Never would be able to pay it off. You would always be spending a lot more than you had planned when it would of been easier to just save the money to purchase what yo wanted.
@atv818 (1980)
• United Arab Emirates
14 Feb 10
The rate is applicable for those who only pay the minimum amount due. To avoid this, always pay the total amount due on or before the due date. The reason you have this rate is because you have little credit history or you have poor credit history. Keep the card and use it wisely which means that whatever you buy, pay it in full when they ask you too. In time (usually 2 years onwards), you'll see that they will lower the rate and even increase your credit limit (for sure, you'll be needing it when the time comes for business and such).
@kingparker (9673)
• United States
14 Feb 10
Definitely. This APR rate only apply for people who has poor credit history, and they are most likely not going to pay. It is a punishment for them, and the companies assume that they have to take such right risk to issue a card to them. On time, if they never default or late on any payment, their credit will be built up for sure.
@Leanna86 (31)
•
7 Apr 10
Apparently if a card issuer doesn't inform there customer of the APR charges then they have to by law compensate the customer of the APR difference and any charges that the customer incurs due to the increase...
This is one of the main reasons I ONLY use a debit card :D
