Check your credit card statements!!
By Thoroughrob
@Thoroughrob (11742)
United States
October 22, 2008 9:27pm CST
What is the interest rate you are paying? Did it go up? They had someone on the news this morning that was not late on any payments and had a credit score of 750, that got his statement and it had went up from 7.9 to 31.99%. The credit companies are raising them to try and get some of their money back! I would think that would be illegal. What are your thoughts?
2 people like this
7 responses
@sedel1027 (17846)
• Cupertino, California
23 Oct 08
When you sign up for the card they tell you that it can be raised to X at any time. However, if the number they do increase it to is above the original number you agreed to, I am oretty sure they are suppose to notify you by law - 30 days ahead.
1 person likes this
@manodogs (415)
• United States
23 Oct 08
Yes, they used to be able to get away with a lot of shady stuff, but several of the worst ones got into trouble a few years back and the government got to looking into the whole thing. Of course, they didn't do much because they all want to get the big "contributions" from the credit card folks...
Still, I was also under the impression that the most recent round of legislation made it illegal for them to change the terms without a 30-day notice.
What they need to look into next is the whole credit "scoring" system, itself!
@sedel1027 (17846)
• Cupertino, California
23 Oct 08
Actually they are re-doing the crediting system. I am not sure if it has happened yet, but I read an article on it possibly 6 months ago. I know it is to happen soon. I bet if you search on MSN money you can find the article
@mjmlagat (3170)
• Philippines
23 Oct 08
Well, it's just not fair if they raised it that much! Althoug I'n not that much of a credit card user because I fear the interest, I still feel sorry about those who are really dependent on them. I hope the government can do something about it.
1 person likes this
@KrauseHome (36445)
• United States
5 Mar 13
I had Credit Cards that the interest rate went up overnight once everything cleared with the bailout, etc. and it is unreal. Even with places I had never been late with. And then if you complain and say something they are like well, get your card to 0, and close your account. But in reality I wonder who is really benefiting from things like this, and it is still getting worse than better.
@teapotmommommerced (10359)
• United States
30 Oct 08
You have to read the fine print on your credit card agreements because in some cases it is not illegal. It should be but it is not.
I think we need not use credit cards as much as possible. I have been cutting back so to pay them back. I want to wipe them out totally. I did use a loan for a business adventure I am involved in but I have faith in recouping my money in a year or sooner. I signed a confidentiality agreement so I cannot talk about it yet. When things get under way and go the way I plan I will be shouting it from the top of my lungs.
@Thoroughrob (11742)
• United States
30 Oct 08
Good luck with it!! We will be waiting!
1 person likes this
@drannhh (15219)
• United States
23 Oct 08
That is a pretty sensational hike. It makes me think back to a time when anything over 10% was considered usury and back then it was illegal, but not anymore. I don't pay any percentage of interest because I don't owe any money. If I borrow to buy a car or real estate it is just for temporary convenience and I make sure the loan is prepaid well in advance of when it is due, because except in special circumstances, it just doesn't make any sense at all to give somebody else that much control. People who borrow for trivial things just are not thinking about how much of their autonomy they are giving up. They sell their souls for immediate gratification.
@Thoroughrob (11742)
• United States
23 Oct 08
We only have one, but it is high enough that I cannot just pay it off. With the way our finances are at this point, I am not sure I could pay anymore than the minimum payment. We were paying a little extra. But you know if one gets away with it, they will all follow!
1 person likes this
@dragon54u (31633)
• United States
24 Oct 08
That should be illegal but they are panicing. People are having their limits drastically reduced, even those that pay the balance each month, and especially if they haven't used their card for awhile. The companies assume that they'll max it out and then default. That's why all the interest-raising and limit-lowering.
@dragon54u (31633)
• United States
24 Oct 08
I just read your response to a person above and if you have a credit card balance you can pay it off fairly quickly. All you have to do if you're making just the minimum payment is send half a minimum every two weeks instead of once a month. It works on the interest somehow and you'll be paid down a lot more quickly and they'll make a lot less money! I heard about this on the Clark Howard show, he's a financial advisor, you can find him at Clark Howard dot com and there is a LOT of good advice there. I get his newsletter and he's saved me lots of money. He even has free advice by phone 9 hours every day!
