Nelson and Martinez join forces to keep credit card rates high

[Here4Good]

I have to side with the free marketeers on this one. Caps would be bad. An unintended consequence may be fewer companies willing to give cards to poorer clients.

You mean people who shouldn't perhaps have credit cards?

Higher rates are charged to higher risks, not poorer people. I'm not into the concept of universal credit, where you just jack the rates for the higher risk borrowers (and you get to define what high risk is).

Isn't that part of the current housing debacle - the concept that EVERYBODY gets a mortgage?

 

[scooterbug44]

The average American has multiple credit cards and thousands in credit card debt.

Even people w/ no debt get screwed by the credit card companies and the way they do things.

You can't even CANCEL a credit card w/o it hurting you financially.

Things need to change!!!! :angry:

 

[rancid]

You mean people who shouldn't perhaps have credit cards?

Higher rates are charged to higher risks, not poorer people. I'm not into the concept of universal credit, where you just jack the rates for the higher risk borrowers (and you get to define what high risk is).

Isn't that part of the current housing debacle - the concept that EVERYBODY gets a mortgage?

The CC companies define who is high risk. They can set the rates based on the risk they are willing to take.That is how the free market works.

My point is tha the rates and penalties should be clearly outlined at the beginning and then not be allowed to be changed unfairly.

 

[Lynnie]

The CC companies define who is high risk. They can set the rates based on the risk they are willing to take.That is how the free market works.

My point is tha the rates and penalties should be clearly outlined at the beginning and then not be allowed to be changed unfairly.

They are clearly outlined as the law requires them to clearly outline. I'm an excellent credit risk and am being nailed due to the fact that we have no stops in place for their tactics. Greezy Bastuhds!

 

[rancid]

They are clearly outlined as the law requires them to clearly outline. I'm an excellent credit risk and am being nailed due to the fact that we have no stops in place for their tactics. Greezy Bastuhds!

When I say clearly outlined, I don't mean " we reserve the right to change our rate at our discretion if you miss a payment deadline". Some regulations requiring the exact percentages up front would be nice. I don't believe CC are doing that now but I could be wrong.

 

[Andy A]

I don't worry about the rates and neither should you if you pay your total bill every month like you do for everything else.

 

[rancid]

I don't worry about the rates and neither should you if you pay your total bill every month like you do for everything else.

Thats works for you and me since we don't carry balances but that is not how most people use credit cards. Nor is that what the CC companies want you to do. They obviously want you to carry balances to collect interest.

 

[Andy A]

Thats works for you and me since we don't carry balances but that is not how most people use credit cards. Nor is that what the CC companies want you to do. They obviously want you to carry balances to collect interest.

I think you will agree that if we all lived within our incomes, we would not be in the mess we're in now. Of course the credit card companies don't want you to pay all every month. And here is the bad part. They would still make money if every one did from the percentage they charge to merchants. Credit cards are a curse and a blessing. It depends on how you use them. Personally, I think they have contributed greatly to the mindset that has us in the financial problem we now have. How many really teach their kids how to us them properly? Not very many, I imagine.

 

[30A Skunkape]

The CC companies define who is high risk. They can set the rates based on the risk they are willing to take.That is how the free market works.

My point is tha the rates and penalties should be clearly outlined at the beginning and then not be allowed to be changed unfairly.

My problem with this is that the market is not free. Fair Isaac and the banks have an incestuous relationship where many people are stuck in a maddening catch 22 of not being able to get credit because they don't have a credit history per FICO, as reported by the banks.

 

[scooterbug44]

I don't worry about the rates and neither should you if you pay your total bill every month like you do for everything else.

It's not that simple - you can have fewer than normal credit cards, use them judiciously, and pay them off in full each month and they'll still find a way to penalize you or charge you for something - if not on that card then through your credit history etc.