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Check your credit card statements...
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| Check your credit card statements...
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| jlohlinger |
I just happened to look at how much of my payment on my Chase Credit card was actually being applied to the principal balance each month... I was a bit shocked to see that of the $100 payment I made last month $60 of it was applied to finance charges... so from there I took a look at the percentage rate which is now at 29.99%
As of February it was 17%... so I called to find out why it was my payment nearly doubled...
After pressing buttons for five or so minutes I got put on hold... when I finally got a real live person I spent the better part of 20 minutes listening to him talk himself into a corner before telling him to go fuck himself...
Long and short of it... the reason it doubled... no reason... it doubled because they felt they could make more money off someone carrying a $2000 balance at 30% than they could at 17%... who's going to stop them... nobody...
If you look around... more and more people are "high risk"... bankruptcies are down because of the difficulty in going through one now... however foreclosures especially in the sub prime market are at such a high point that a six month nation wide moratorium on foreclosures is currently being considered...
This all comes at a time when the government requires that minimum payments be raised to "help" pay off bills quicker...
So what do we have now... a loop hole for the credit card companies to increase profits while giving the consumer nothing but larger more oppressive debt... thank you so much you wonderful "public servants" in Washington...
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| ChknbonRobinson |
Get a credit card where you get a special 0% APR for all balance transfers, then cancel the other card.
Or you could take the easy way out as I just did and file a bankruptcy, I dropped $60k in credit cards and another $10k in medical bills. It's not as hard to qualify for bankruptcy as people think. |
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| Gator_Russ |
I don't have a credit card for that reason... the companies can raise the intrest rates any time they want.
Fuck that shit man. My bank card has a visa logo on it. If I really want something, I'll save up the cash. If I can't buy it, I don't get it. I'm almost out of debt now; I'm not going back because Joe Shit the Rag Man's Financial Institution wants to offer me a 1000 dollar credit limit at 18% to start with... then raise it to 31% after 3 months even though I didn't miss a payment. |
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| MFD9111 |
| I see all my friends with this same problem, and I tell them the same thing. Stop living beyond your means, I only have one credit card and I only use it in emergencies or if I can pay it that week, therefore I don't pay interest. |
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| PriceIsRight |
Quote: Originally posted by jlohlinger
so from there I took a look at the percentage rate which is now at 29.99%
As of February it was 17%... so I called to find out why it was my payment nearly doubled...
Long and short of it... the reason it doubled... no reason... it doubled because they felt they could make more money off someone carrying a $2000 balance at 30% than they could at 17%... who's going to stop them... nobody...
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Dude, companies have been doing that for years. Nothing new. They raise when they want, because they know you don't always check your staements.
transfer your balance to a lower percentage card, and pay off as much, if not all of it, that you can. When the percentage is about to kick in, transfer it again.
Tricky people, they are. Sad part is, you learn when it's to late. |
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| PriceIsRight |
Quote: Originally posted by MFD9111
I see all my friends with this same problem, and I tell them the same thing. Stop living beyond your means, I only have one credit card and I only use it in emergencies or if I can pay it that week, therefore I don't pay interest. |
1 card is good, 2 should be about the limit. Use it only if you have to. It's sad that you need credit cards. But overall CASH IS KING! |
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| Michael Calta |
You must have a piss poor credit rating man. You've got to learn how to work, kid. I've got about a dozen cards and use them to play off each other (depending on what things you use them for, you could get by with 2 or 3). Most credit card companies have an internal score for you based on your profitability to them (completely independent of your fico), that score tells the reps what kind of offers they can make you. Basically, when you get a new card use it regularly for a few months, don't pay it off each month, but pay more than the minimum (that way they get a little interest and make some money off you). After that just put it in the back of your wallet and use a different card for a while. When you need a better rate than what you currently have, you can then go back to the first card call them up, and they will usually lower any rates in order to get you to use their card again. This only works if you can trust yourself, not to over extend and carry balances on all cards.
I've been doing that for years, and have an excellent standing with my cards. Average credit limit is $15,000 with some as high as 27,000. My Fico is 781. I don't even bother with car loans, before purchasing my last vehicle, I called my discover card, and told them that I was planning on making a large purchase and wanted to take a couple years to pay it off, after turning down several offers in 5-7% range and I told the lady that I'd just check with one of my other cards, she asked me to hold for a minute while she got a supervisor. After turning down a couple offers from the supervisor I was offered a 0.9% rate until it was paid off. I accepted, and I had it paid off far sooner than I would have with an auto loan.
I've even made money off the cards before, I arranged a 1.9% balance transfer rate with one card, and then took out a $5000 cash advance from another. I used the cash to buy a 1 year share certificate that paid 5.5% interest. I transfered the balance to the card with the low rate. Basically, I borrowed money at 1.9% and loaned it to the bank at 5.5%, so I played middle man and got paid 3.6% interest on the credit card company's money. :) |
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| kevola |
Quote: Originally posted by Michael Calta
You must have a piss poor credit rating man. You've got to learn how to work, kid. I've got about a dozen cards and use them to play off each other (depending on what things you use them for, you could get by with 2 or 3). Most credit card companies have an internal score for you based on your profitability to them (completely independent of your fico), that score tells the reps what kind of offers they can make you. Basically, when you get a new card use it regularly for a few months, don't pay it off each month, but pay more than the minimum (that way they get a little interest and make some money off you). After that just put it in the back of your wallet and use a different card for a while. When you need a better rate than what you currently have, you can then go back to the first card call them up, and they will usually lower any rates in order to get you to use their card again. This only works if you can trust yourself, not to over extend and carry balances on all cards.
I've been doing that for years, and have an excellent standing with my cards. Average credit limit is $15,000 with some as high as 27,000. My Fico is 781. I don't even bother with car loans, before purchasing my last vehicle, I called my discover card, and told them that I was planning on making a large purchase and wanted to take a couple years to pay it off, after turning down several offers in 5-7% range and I told the lady that I'd just check with one of my other cards, she asked me to hold for a minute while she got a supervisor. After turning down a couple offers from the supervisor I was offered a 0.9% rate until it was paid off. I accepted, and I had it paid off far sooner than I would have with an auto loan.
I've even made money off the cards before, I arranged a 1.9% balance transfer rate with one card, and then took out a $5000 cash advance from another. I used the cash to buy a 1 year share certificate that paid 5.5% interest. I transfered the balance to the card with the low rate. Basically, I borrowed money at 1.9% and loaned it to the bank at 5.5%, so I played middle man and got paid 3.6% interest on the credit card company's money. :) |
I do this exact same thing and it's amazing (a) how great your credit rating turns out to be, and (b) the low rates and great balance transfer offers you can take advantage of as a result. It's a lot of fun playing one credit card company against another to get the best deal in the end. Discover is the only company that I've really had a problem with....the interest rate they were giving me was ridiculously high (probably because I don't use it a lot and don't carry balances on it) and calling them only resulted in them telling me that the rates were computer generated and they had no authority to change it for me to a lower rate. They offered me a balance transfer offer at 0% for the life of the balance as a consolation prize, but by the end of the call I was so pissed I closed the account.
Calta's right though....multiple cards is a great way to help build up your credit as long as you keep it in check and don't let it get out of control on you. |
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| Gator_Russ |
| Yeah... you guys enjoy doing that now. I hope it works out for you... but when you pull the 1 wrong block out of that giant jenga deal that you guys are continuing to do and it all comes crashing down... Just remember that we all told you so. :D |
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| jlohlinger |
Quote: Originally posted by MFD9111
I see all my friends with this same problem, and I tell them the same thing. Stop living beyond your means, I only have one credit card and I only use it in emergencies or if I can pay it that week, therefore I don't pay interest. |
I'm in no way shape or form living beyond my means and I make every single payment... the problem seems to be every year when I pull my credit report there is more and more shit attached to it that I have absolutely nothing to do with... hell some of the shit that was sent to collection in my name I've never even heard of...
Then it's a matter of spending three or four months trying to explain to the big three that I haven't been to Arkansas or Iowa in years so how was it I was seen by a doctor there...
Any way you look at it these companies are getting richer and richer because politicians refuse to regulate companies that put money in their pockets... there's a reason they're called "public servants" because they're supposed to be in office to serve the public not their bank statement... |
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| Vlaw |
Banks and Insurance comapnies suck balls. That's all there is to it.
If the card allows for adjustable rates they'll screw you as soon as they can.
And, they say it's only going to get worse.
As for credit. If you have credit probs talk to shon at Beacon. He get's some spectacular results. |
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| Scales |
The only credit card I now have is a Visa through my bank.
I used to have a Mastercard that I got over the phone or in the mail. I've heard a lot of bad things about those, and have a story of my own.
I had insurance for my credit card, and luckily, when I became unemeployed, they paid my interest payments for me. They didn't send me any more statements, I figured everything was o.k.
Well, they weren't paying the total payments, the various service charges and things, as well as insurance payments were being put on the balance of the card. They increased my limit without my knowledge, but after a year or so, I went over the limit with all of the service charges and things I assumed were covered under the insurance.
When I was over limit, they started charging me $100 / month penalty, as well as increasing my interest rate to 29% or so. No phone calls, no letters, like you would expect a credit card company to do if you weren't making full payments.... odd....
The insurance was only paying the interest from when I had a lower rate and lower principal. Still not getting any statements, the balance on the card quickly grew way out of hand.
By the time I found this out, I was up to $12,000 owing (I had only owed $4000 when I became unemployed, and between the penalties and the ridiculous interest rates, I started making payments of over $600 / month which only covered the interest and did nothing to the principal.
I thought somehting about what happened to me should be illegal, but when I looked into it I was told there was probably fine printing some where that alluded to what could happen - and that I should never accept any credit card sent to me in the mail or offered over the phone.
The moral of the story, is if i can't go to a bank and actually see someone - I am not going to get a credit card with them. |
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| Michael Calta |
Quote: Originally posted by Gator_Russ
Yeah... you guys enjoy doing that now. I hope it works out for you... but when you pull the 1 wrong block out of that giant jenga deal that you guys are continuing to do and it all comes crashing down... Just remember that we all told you so. :D |
?? There is no giant jenga deal. Maybe I didn't explain it well. After you get a history established with a few cards you just alternate which ones that you use, you don't use all of them at the same time. At any given time, I've only got a balance on 1 or 2 cards. Currently I've got $3500 on my chase card, because I just refurnished my home office at tax time. That balance has a 1.9% interest rate, and will be paid off in about 5 months. The other card that I'm using is my discover open road card, I use it for gas purchases because I get 5% cash back. I pay that balance off monthly, and pay no finance charges, so I end up with the convenience of pay at the pump and I pay 15 cent less per gallon.
Now, instead of adding more to the Chase card, I'll wait until it's paid off (also, after paying it off the credit limit will most likely increase). When I need to make another purchase I'll call one of the cards that I haven't used in a while and get them to lower the rate, and then use that card. |
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| Scales |
Quote: Originally posted by Michael Calta
When I need to make another purchase I'll call one of the cards that I haven't used in a while and get them to lower the rate, and then use that card. |
A lot of cards will automatically lower the interest rates to a really low number if you pay off the balance in one shot. They want you to put money on that card. In 6 months or so, they might jack it back up, but like you said if you have a few cards to play with then it works out.
The one downside to doing this with so many cards, is if you need a loan or a mortgage for something. The banks look at your credit limits on all the cards as if that is how much debt you are in, and at a credit card interest rate, when figuring out how big of a loan payment you can make each month.
A lot of people with good credit, and a large credit card limit (that is not used) get turned down for loans because of that. |
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| Valve |
Balance transfers are your friend when you carry a credit card balance.
Tons of cards do the no interest for 6 months on balance transfers. J |
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| SantosLHalper |
| another scam that they get people with are these cash advance places. i saw a commercial using that fidget, gary coleman, as a shill. he was going on about how he needed money fast, yadda yadda, and stated this place could wire between 1-5K to you account. when they ran the small print blip at the end, i could only make out something along the lines of a typical loan being 2500 at, get this, 99.x% APR $416 and change for 24 mo....for a grand total of close to 10K....u gotta be fucking kidding me! |
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| Salkicksass |
I refuse to get a credit card.. Fuck those companies..
Atm/CC is the way to go.. |
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| USMCMatt |
| Keep in mind the universal clause most cards have (I think Capital One doesnt) if you're ever late on one card, ALL your other CC companies can instantly blow your rate way up because of that even if they nothing to do with the late card, just because it happened is reason enough. |
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| jlohlinger |
Quote: Originally posted by USMCMatt
Keep in mind the universal clause most cards have (I think Capital One doesnt) if you're ever late on one card, ALL your other CC companies can instantly blow your rate way up because of that even if they nothing to do with the late card, just because it happened is reason enough. |
The "default" clause... yeah that's another bullshit one...
The thing I'm still trying to figure out is how exactly my driving skills and credit rating are tied together... :rolleyes: |
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| Ryan79 |
| I have a Household Bank Mastercard and those bastards did the same thing to me. I was late making my payment (I pay the balance off every month) one time and they raised my interest rate to %29.99 percent! |
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