Survivalist Forum banner

1 - 6 of 6 Posts

·
not a nut
Joined
·
1,629 Posts
Discussion Starter #1
Why banks are boosting credit card interest rates

Cuz they can................ :mad:

http://www.usatoday.com/money/industries/banking/2008-11-09-bank-credit-card-interest-rates_N.htm

Tommy Newsom was shocked when his bank nearly doubled his credit card interest rate this year, to 27%, for no apparent reason. A customer rep told him the law allowed the bank to do so, and that was all the justification it needed.

"I never missed a payment," says Newsom, 63, of Mesquite, Texas, who owes about $5,000 on the card. "The bank is just looking for a reason to maximize profits."

In recent years, banks have sharply raised interest rates and penalty fees on credit cards. As the economy tanks and banks' mortgage-related losses balloon, some banks are stepping up such increases to boost revenue. Bearing the brunt are consumers for whom a jump in rates and fees can make it tougher to pay their bills at a time when household budgets already are being stretched.

A key driver behind this trend: securitization. From 2003 to 2007, seven of the largest issuers of credit cards packaged an increasing amount of card debt into securities and sold them off to investors, just as banks did with mortgages, a USA TODAY review of banking records found.

Selling off credit card debt has given banks a powerful incentive to raise card fees and penalties, according to interviews with dozens of industry analysts, academics and investment specialists.

Full story
http://www.usatoday.com/money/industries/banking/2008-11-09-bank-credit-card-interest-rates_N.htm
 

·
"Dolt"
Joined
·
3,265 Posts
They increased the balance on two of my cards earlier this year to 28%.


Both have a balance of $0 and have been that way for over a year.

:(
 

·
Registered
Joined
·
475 Posts
When it comes to the workings of Hi-Finance I'm not all that understanding but they keep handing out these 2.9% checks for the life of the loans what is that all about.......
I took 20K from them at 2.9% put it in lonc term fixed Cd's for for 4.5% paid it off in 4 years and everyone seemed Happy no rate increases in my experience......
I certainly was made a 1.5 and saved 20k in 4 years.........
Just haven't had that experience with them yet.
 

·
Registered
Joined
·
18,814 Posts
I'm just glad we paid off all of our debt a long time ago. I've been preaching to my kids since they left high school....NO CREDIT CARDS! EVER! Thank goodness they listened to me and their step dad.
 

·
Information is Ammunition
Joined
·
22,122 Posts
use a debit card for online sales. never had a use for a credit card. im bad enough with money
 
1 - 6 of 6 Posts
Top