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Forum Post: As You Pay Excess Interest Your Credit Card Rate Should Drop.

Posted 11 years ago on Dec. 16, 2011, 12:51 p.m. EST by scvblwxq (155)
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.



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[-] 2 points by dawnofthededad (1) 11 years ago

The problem is people getting a credit card and acting like it's found money. They charge to the limit then BITCH about having to pay it back and the interest. Those people are STUPID and deserve to not have anything for a while. They should move back to their mommy's basement (if they ever moved out in the first place) and get out of debt, save up then go out in the real world.

[-] 1 points by scvblwxq (155) 11 years ago

That may be true but the banks are acting like its customers are theirs for the fleecing.

[-] 1 points by randart (498) 11 years ago

I cut up my credit cards.

I have noticed that between the commercials telling me to go to the doctor to ask if some medicine is right for me the banks are trying to sell us the grand value of having their credit card. It seems to matter what color the credit card is, for some reason, and it makes a big difference if we ask the doctor if we are healthy enough to have sex.

Cut up your credit cards and buy only what you can afford. Have sex whether you ask a doctor or not.

Gawd, we are so easily led.

[-] 1 points by scvblwxq (155) 11 years ago

I didn't say it was fraud I said it was a fraud. They pretend like every transaction is a separate event and the amount of interest they charge to cover risk is only determined by your credit score and conveniently ignore the interest they have collected to cover risk. Use Credit Unions!

[-] 1 points by fairforall (279) 11 years ago

how is this fraud?

[-] 0 points by avery724 (60) 11 years ago

And if you pay your bill in full every month, and get back money from the credit card co. , what do you call that?

[-] 1 points by scvblwxq (155) 11 years ago

A marketing ploy until they start charging, like for ATM use and like the fee they tried to place on debit cards.

[-] 0 points by avery724 (60) 11 years ago

Doesn't matter to me. I still pay the bill in full.

[-] 1 points by scvblwxq (155) 11 years ago

And you kids and other extended family?

[-] 0 points by avery724 (60) 11 years ago

They pay their bills in full or they pay cash for their purchases.

[-] 1 points by scvblwxq (155) 11 years ago

So why are you on a site dedicated to making America a better place for all? It seems you are comfortable and content and don't mind bad things occurring as long as you are not affected.

[-] 1 points by avery724 (60) 11 years ago

You really think this site is dedicated to making America better? By comfortable I take it you mean that I am able to pay my bills. I am not content with the current administration ( a criminal enterprise) or career politicians. I am not content with a govt that continually spends more than it takes in in taxes. Raising taxes is not the answer, cutting spending is. I am not content with the govt trying to control every aspect of my life through laws that are called regulations , made by rogue agencies.

[-] 1 points by scvblwxq (155) 11 years ago

As long as the big banks through the Fed create and control the money the main choices we have are taxes and spending.

They want interest to lend "their" money to the government even though the government by the constitution has the right to create money.

The US gave its sovereignty to the Fed a long time ago, now we are stuck between borrowing, spending and taxing.

See http://monetary.org for a plan and a bill to return money creation to the government, pay off the national debt without causing recessions and limit the Fed to controlling interest rates.

[-] 0 points by avery724 (60) 11 years ago

Do NOT raise taxes. Cut the spending.

[-] 1 points by scvblwxq (155) 11 years ago

What we really need is to put the 20 million unemployed and discouraged workers back to work then we would have enough taxes and spending would be lower.

We lost around a 1/4 of our factories to China starting in 1980 when they began to devalue their currency to the point you could get 5 items for what 1 cost before the devaluations and US factories moved there to stay in business and to make a big profit.

How to get those factories back or replacements built and how to protect them from foreign currency manipulations like China's is a problem that I haven't heard a solution for.