You posted: You know what though, life happens. Not everyone uses their cc’s for material goods— some use them for medical bills, growing a business etc...
Besides, 32% interest (the “maximum allowable by law”) is usury.
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That rate isn’t usury in all states. In any event, the point is that if you use credit be prepared to pay it back. The only reason rates are this high is because of the credit history of the card holder. No one forces anyone to take these cards, or to use them. Consumers have a duty to understand what they are getting themselves into.
Not really. CC really are awful. My wife had 750 credit score with about 10% utilization. She got 2.99% BT for life offer on her AmEx and put about 85% utilization (paid off her 6% auto loan) with a FICO score still at 730. 10 year history, no negatives whatsoever. Chase rate jacked a card she had at 8.99 with about a $2500 balance to 29.99 because “another card was near its limit.” That card was paid off in 2 months and immediately went back down to the normal rate even though 98% of the BT was still there. I haven’t touched that Chase card since and it’s been over a year. I hate CC companies and after I’m done paying ours off completely by March, they’ll be locked away for good. I’ll use them every once in a awhile to buy gas so our FICO stays high but that’s it.
Oh and I forgot to note that even with 85% utilization on her AmEX card her overall utilization was still under 30% and was the only card over 30%.
Not always.
Some credit card issuers will increase rates simply because market conditions change (like now, with the mounting sub-prime mortgage losses).