How the banks gouge you

[Leftfield]

Quote

Don't be surprised to learn that the card issuer holds all the cards, so to speak. Interest rates of around 18% are just the beginning. Late-payment fees are rising from $15 to $20, and grace periods are falling from the former 5 to 15 days to, in some cases, just one day! Charging over your limit slaps another 15 to 20$$ on your bill.

there's also a new practice by card issuers called "risk based reprising" where users are penalized with sharp interest rate hikes by one bankcard as they build up debt to other cards. This is justified by the rationale that the consumer now poses a bigger credit risk, even though he has always made regular payment.

Not that the credit issuers are really worried. Credit card companies are raking in profits so high that they can afford 4.25% default rate because they the other 95.75% of consumer will pay off their debt eventually.[SIZE="4"]They are fully aware that $5000 balance due, at %18 interest on which the debtor payd the minimum of $100 a month, will eventually be paid off-in 39 years!!!!!!!!!!!

[StaciMM]

FYI-if you don't carry a balance, then there shouldn't be an issue. When you DO use a card (so that it stays active) don't use more than 30% of the limit and you'll be safe. Pay that when the statement comes, if not sooner.

[Leftfield]

I ... um .... agree .. totally !!!! No question about it ! Absolutely

You see, it's a very interesting game. You and I and I presume most of us going through BK, or considering it, do know, now how to to play the game and we will never fall for it again- and STILL using credit.

I'm not discouraging you, or anybody else, from using credits. I'm just showing some fact about banks practices.

[StaciMM]

And I'm not disagreeing with you- no one should assume the credit card companies are there to help us in any way. It is a war. I just refuse to allow them any amunition over me.

[AAAArt]

Earlier today someone on one of the threads posted how the banks were doing this and all of the reasons which entitled them to. All of the ones you've listed are there, however there is one which really, really got me. "Too much available credit" So, if one of your cards jumps from $500 credit limit and you have $50 charged against it, to $5000 credit limit, then the others could raise you to the default rate since you now have too much available credit.
BTW, Did anyone watch Boston Public last week. It was about just this issue. A secretary had "inquired" about leasing a car (didn't go through with it) and this co. raised everything to 30%. Very interesting episode. Art

[bkfiler]

yeah, i love boston legal. its funny. i like james spader alot. he is a really good actor.

[thrilch]

it's no different from mafia loan shark tactics, but rather than the threat of beating you up, the threat is to ruin your credit. for many people, they fear the latter worse.

[Lightning]

Here's how to save money on fees.

Don't carry a balance.

Pay on time.

It's really easy.

[Genenco]

Gee Lightning, what ever the advice you give (Wild laughter) I'm sure is such that lowly mortals such as us really don't deserve the grace by which you impart it.

Please, find some other board which would applaud your sefless giving of your wisdom, we just aren't worthy...

[StaciMM]

As much as I hate to admit it, he is RIGHT on this one and he stated his view without judgement or being rude.

No creditor can charge you interest or fees when you have no balance, and carrying ANY balance on revolving debt has costs. If you choose to use credit beyond what you can pay when the statement comes, don't cry fowl about paying the interest, etc.

Beyond that, know when your bills are due. If by some odd situation you didn't get your electric bill in the mail, would you think you don't have to pay it? It is our responsibility to know our obligations, including when to pay and how much.

Gee Lightning, what ever the advice you give (Wild laughter) I'm sure is such that lowly mortals such as us really don't deserve the grace by which you impart it.

Please, find some other board which would applaud your sefless giving of your wisdom, we just aren't worthy...

[bkfiler]

really? we didnt know that. im so glad that information was imparted on us.

staci: dont encourage him. honestly. that info is like posting on a crack addicts recovery website that... smoking crack is bad for you.

[Genenco]

As much as I hate to admit it, he is RIGHT on this one and he stated his view without judgement or being rude.

No creditor can charge you interest or fees when you have no balance, and carrying ANY balance on revolving debt has costs. If you choose to use credit beyond what you can pay when the statement comes, don't cry fowl about paying the interest, etc.

Beyond that, know when your bills are due. If by some odd situation you didn't get your electric bill in the mail, would you think you don't have to pay it? It is our responsibility to know our obligations, including when to pay and how much.

Staci, I hate to say this, but yes the CC's can and do charge fees even with no balance. Remember the secured cards are just that way and even some unsecured ones also have yearly "Fees"

Hate to say "Told you so" but....

[StaciMM]

True-but if that is an issue for you, DON'T APPLY FOR THAT CARD. If you get an offer for a card w/ $150 annual fee, and $29 opening fee, and $6.50/mo maintenance fee: Tear it up & throw it in the garbage. If you fill it out, and send it back in, don't complain about it.

I am not referring to what we have done in the past-mistakes happened, for whatever reason. Perhaps we didn't research & investigate, and didn't really know how it all worked.

Plain and simple-know what you're getting in to and if you don't know the terms, don't sign on the dotted line. Know the consequences in terms of interest, fees, etc. Don't claim ignorance as an excuse ("I didn't know better" is not a valid arguement-if you're here and reading these boards, then you DO know better), and if you put yourself into a situation where you have to pay interest, fees, etc. then don't say its all because of those evil credit card companies.

I'm not saying the creditors are blameless. I'm saying that mistakes made in the past should make us wiser-so we don't make them again. Ever hear the saying "Fool me once, shame on you. Fool me twice, shame on me."

Staci, I hate to say this, but yes the CC's can and do charge fees even with no balance. Remember the secured cards are just that way and even some unsecured ones also have yearly "Fees"

Hate to say "Told you so" but....

[bkfiler]

what do you do when they raise the interest rates to 30% for whatever reason they choose? which under some circumstances cause you to go overlimit, and then cause more fees plus the reporting of over the limit to the credit bureaus. that was all in the details too.

seems evil to me. people dont really expect to ever have their interest rates increase. in fact, you still dont think your cards will be increased do you? but they can.

"Don't claim ignorance as an excuse ("I didn't know better" is not a valid arguement-if you're here and reading these boards, then you DO know better), and if you put yourself into a situation where you have to pay interest, fees, etc. then don't say its all because of those evil credit card companies."

sorry, credit cards companies are evil. simple as that. ive shown proof that they prey on hard luck individuals, people that are not in great situations and get themeselves deeper. just becuase you know they are evil doesnt mean they are no longere evil. and you know they are evil. and we all know what we mean when we say that. so just becuase we now admit they are evil doesnt mean we are supposed to like their tactics and never say they are evil. need a little context here. it wasnt a thread to ask for help. it was a thread to show how evil they are. the problem is that you let someone childish dupe you into the lame argument he was trying to make - which was really just him trying to show how so much better he is then everyone else.

the thread went off wack becuase of that. period. and most of us didnt let that throw us off track.

[Genenco]

Quite right, but couldn't resist that!

True-but if that is an issue for you, DON'T APPLY FOR THAT CARD. If you get an offer for a card w/ $150 annual fee, and $29 opening fee, and $6.50/mo maintenance fee: Tear it up & throw it in the garbage. If you fill it out, and send it back in, don't complain about it.."

Quite right, however, when we "Restart" that usually is the "Only game in town" but after a year, you usually get better terms and can drop those nasty ones

I am not referring to what we have done in the past-mistakes happened, for whatever reason. Perhaps we didn't research & investigate, and didn't really know how it all worked. ."

I don't for a minute disagree...I accepted my part in this and have never hated them for what I did. Why I am so angry (As someone pointed out, but I think it's something else) is the creditors refusal to actually "Talk with me, work with me and resolve this situation" Nope, it's always "We want this, nothing less or you'll suffer" Fine, as I always say "Treat me like dirt, don't complain if I do the same" (Or worse)

Plain and simple-know what you're getting in to and if you don't know the terms, don't sign on the dotted line. Know the consequences in terms of interest, fees, etc. Don't claim ignorance as an excuse ("I didn't know better" is not a valid arguement-if you're here and reading these boards, then you DO know better), and if you put yourself into a situation where you have to pay interest, fees, etc. then don't say its all because of those evil credit card companies.."

That's quite true now. Now we are prepared, informed and wise to the ways of the (Evil) credit card companies (I think trying to make you pay discharged debts is nothing less then sneaky and therefore evil) and are now on the look out for other tricks they'll try.

Oh BTW I heard of a new one. Some of the CC companies (This is only beginning) are no longer allowing you to pay online and MUST pay by check. This CAN cause you to be late (Like the mail system is perfect ) and thus up go your rates...Pretty cool frankly..Sure makes YOU run hey?

I'm not saying the creditors are blameless. I'm saying that mistakes made in the past should make us wiser-so we don't make them again. Ever hear the saying "Fool me once, shame on you. Fool me twice, shame on me."

Oh I agree, agree, agree...I (again) never said I was blameless..Hell, I did it. I was willing to pay out it all! But no, they wouldn't work with me, only to their tune..Sorry, real men don't dance....(joke there ok?)