I have been noticing many thread on sudden APR increases for people that are not late.. whats going on with that??
I have been wondering about that too -- it's not like interest rates in general are going up. There's something wrong when the prime rate is 4.75%, you can get mortgages for 6%, but credit cards are charging good customers rates in the 20s.
Subprime lenders are in deep trouble. Default rates of customers in this industry continue to rise. Lenders are pricing in risk associated with this class of borrower. Nothing new here. Just capitalist demanding to be paid to assume risk that other lenders don't wish assume.
I just a a letter to the opposite. I have carried a balance on my citibank credit card for about 3 years now. I have no late pays with them (since they went online payable ~ 3 years) and they lowered my APR when I paid my total balance. I thought that was a nice added bonus, but it probably means it was too high in the first place -=Derfel=-
I just contstantly move balances around, i yank CITI's chain, just to let them know who wears the pants around here. If you carry balances, make sure you regularily exercise BT rights and they'll come a beggin for your business. This is a VERY good reason i like the Amex business cards. Moving all your balances into oblivion for a few months, makes the other banks sweat when you ask for that 3.9% for life. You have to show them who is in control. You have to take control and manipulate the system to your best interest. The credit issuers prey on WEAK customers. People who sit around and just take what they get. Unfortunately thats 99% of the people out there. Clueless. Don't put all your marbles in one corner. They will not raise your rate if you are profitable to them, if they do, you take your business elsewhere, like a crack addict, they will be knockin on your door for business once you yank that chain away, its at that point you turn the tables on them.
OK... I have one credit card (capital one ) with a 19% APR... I have had it for almost 6 months and they have not made one penny from me.. in fact I am making money off of them because the CC is secured and from what I understand your secured deposit can accrue some interest... SO am I in the GOOD as far a CAP1 sees or should I carry a balence everyonce in a while?? Again I just want to maximize my CL and minimize my APR.. and continue a good relationship with CAP1
If the choice is, should I be a lender or, a debtor, always be a lender. Why pay interest if you can earn interest? Cap 1 makes money off your account. Everytime that card is used, they collect a fee from the merchant. They also make money off your deposit. They're paying you less than it cost them to borrow at the Fed's window.
