Posted 1 year ago on Dec. 16, 2011, 12:51 p.m. EST by scvblwxq
This content is user submitted and not an official statement
If you have a $1000 credit limit, a 25% interest rate and the bank pays 0% from the Fed for money after 4 years if you are maxed out the bank will have collected $1000 in interest.
The bank doesn't have to worry about you defaulting because they have the money through the interest they have collected so your interest should drop to what the bank pays plus their costs, profit included and decided by competition not credit score.
If fact the rate should drop as they collect excess interest since the amount they can actually lose is less as the interest they have collected increases.
This is a big fraud being perpetrated on credit card holders and it should be brought to light and fought in the courts, legislatures and the court of public opinion.