My APR just got increased by 270 percent

Simon makes a good, important point here, and one that was not always as true or impacting to the extent that it is now.

The problem is that a lot more people are falling onto the side of being bad credit risks, and not just because they are wantonly being irresponsible, at least not in the way most people looking down on them as such would see it.

Many people would not have been considered poor risks even as little as two years ago. They may have even had the same sort of pristine credit record that Birdscribe and others proclaim to have now. But things can change. Things have changed.

All it takes is losing one's job or being under-employed for long-term stretches for people who once were good at managing their cards to turn into people unable to do it very well.

Money makes the world go round. You simply have to have it, to a livable extent, in order to, um, live. If you don't, what are you going to do, whether you want to, or not, and whether it is prudent, or not?

You are going to turn to your credit cards, and start using them when you previously wouldn't have done so. Without money, credit is your only option short of emptying out your retirement funds, selling your home or declaring bankruptcy.

And there are plenty of people already doing all of those things, too, all in an effort to pay off credit cards, or try not to run them up any further.

 

Yes, really.
There are lots of banks with stock prices still in the single-digit range and still losing money. They can't be in either position forever. Ragu could not be more correct about his analysis of this. Congress went after the banks when they were bleeding on the floor and fired a few more shots into a body fighting for life.
Nice work, folks.

 

If the only way that banks can stay in business is by screwing over their customers, then they don't deserve to stay in business.

I understand the need and desire to make profits. But when the top people are making millions at a bank thanks to charging me more for purchases I've already made, taking money out of my pocket, my sympathy for the banks goes kaput.

 

This is the most insane circle jerk I've heard in a while.

Banks: "We NEEEEEEEED those high-risk people because they'll pay only 4 percent a month at 27% and give us a steady income stream."


Banks: "We're losing billions because of high-risk people defaulting."

 

Numerous new applications hurts your credit rating, not having numerous cards. They're mostly interested in how much credit you have and the percentage of it you use. If the percentage is low, you're good. Canceling a card lowers your available credit and, presumably, raises the percentage you're utilizing, plus it potentially shortens your credit history.

 

I get at least one credit card offer a day. Sometimes American Express, sometimes Discover. Last week I got one from Harris Bank and handful from Citibank.

 

See, my plan is foolproof. I'm not going to outlive my debt. And if it gets to the nitty-gritty ... I am not going to outlive my debt.

 

Glad I clicked on this thread. Immediately went to my two credit cards. One has stayed the same but the other jumped from 7.9 to 17.9. I'm really glad (lucky i had the money) I completely paid off both in the past two months.

 

Here are the new laws:

1. Banks can't change the interest rate on money ALREADY borrowed unless there is a variable interest rate or there was an introductory "teaser" rate (which must be disclosed).

2. You can no longer exceed your limit and then be charged a penalty. Instead, cards are declined. Also, you can't be charged a fee because of the way you pay your bill (i.e. by phone, internet, etc.)

3. Payments over the minimum must have the excess applied to the balances with the highest interest rate. Due dates must be the same every month. And no more "double-cycle" billing.

4. Customers must be notified at least 45 days in advance of any rate changes. Terms, charges and payoffs must be clearly explained. And dates the payments must be received by to avoid penalties must be clear.

That's it. Companies can still charge a wide range of penalties, can still raise and lower rates, can still arbitrarily lower limits or completely cut the card off with no warning, can still apply the minimum payment to the balance with the lowest interest rate and can still apply whatever the hell rate they want.

No idea how anyone could look at these rules and think they're unfair.

Just because you used to be able to do shady things and make money off of it, it doesn't make it right. I wonder how much car companies could make if they didn't have to install seat belts or meet other safety standards?

 

No shit. The C/C companies are out for blood.

 

Right-on.