Concerns Regarding Credit Card Offer (cont'd.)
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Concerns Regarding Credit Card Offer
Posted: Sun Mar 26, 2006 2:26 am
No, you don't get charged on money you already paid. You only get charged on money you've borrowed and not yet paid back. Two cycle billing basically means you didn't pay your balance in full by the payment due date, so you no longer have a grace period for subsequent purchases until all is once again paid in full.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: awshucks
Posted: Sun Mar 26, 2006 6:30 am
Yeh, a disturbing trend seems to be developing, in which CC co's are using segments of the universal default Fed laws to circumvent State usury limits. The big money isn't in the mere doubling of payments, its in the ability to give you a 'fixed' card rate one minute and after you have a sizeable balance, use any pretext (isolated late pay, late mail, other) to review the account/fico and retroactively jack interest rates into the 30 percentiles. Now you know why they so meekly aquiesced to shorter 'normal' repayment schedules...the back end benefit in penalties and lax law regarding assignment of penalties is a potential windfall.
My two cents...
Tip 1: Don't keep any balance on a card that you can't afford to pay in full today. This activity or the mere threat of it threatens to crush the CC carry trade.
Tip 2: Refuse to do any business going forward with any CC co. that evidences these loan shark tendencies.
I'll post the url for the story I refer to shortly.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: awshucks
Posted: Sun Mar 26, 2006 6:33 am
Here's the URL
theintelligencer.net/business/articles.asp?articleID=3732
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: TomfromCT
Credit Expert (100+ Posts)
Posted: Sun Mar 26, 2006 7:44 am
The scary part here is how they kept the jack in minimum payments mostly a secret until the BK laws changed.
The only exception is BOA. They took a big hit on their bottom line but their decision stands out as admirable in a business ***** bent on making indentured servants of us all.
And with the universal default thing now - just applying for a new loan can potentially mean a jacking of your rates.
I think the new situation is sooooo far over the top in favor of the cc's that it won't last. Or at least we will find out if gov't for the people, by the people has in fact ended in the USA.
_________________
Average credit score: 709 !!!!!!
WOOOHOOOOOO
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: maddybeagle
Credit Expert (100+ Posts)
Posted: Sun Mar 26, 2006 9:16 am
Here is what discover card did with my 2-cycle.
More specifically, made a purchase of around 500 bucks on 12/21/05 which appeared on my 1/27/06 statement. Paid the min. payment but no finance charges. The next statement on 2/27/06 charges me interest for the CURRENT billing period and the PREVIOUS billing period. So yes, the retroactively erase the grace period all the way back to the purchase date.
Always pay in full
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Concerns Regarding Credit Card Offer
Posted: Sun Mar 26, 2006 2:26 am
No, you don't get charged on money you already paid. You only get charged on money you've borrowed and not yet paid back. Two cycle billing basically means you didn't pay your balance in full by the payment due date, so you no longer have a grace period for subsequent purchases until all is once again paid in full.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: awshucks
Posted: Sun Mar 26, 2006 6:30 am
Yeh, a disturbing trend seems to be developing, in which CC co's are using segments of the universal default Fed laws to circumvent State usury limits. The big money isn't in the mere doubling of payments, its in the ability to give you a 'fixed' card rate one minute and after you have a sizeable balance, use any pretext (isolated late pay, late mail, other) to review the account/fico and retroactively jack interest rates into the 30 percentiles. Now you know why they so meekly aquiesced to shorter 'normal' repayment schedules...the back end benefit in penalties and lax law regarding assignment of penalties is a potential windfall.
My two cents...
Tip 1: Don't keep any balance on a card that you can't afford to pay in full today. This activity or the mere threat of it threatens to crush the CC carry trade.
Tip 2: Refuse to do any business going forward with any CC co. that evidences these loan shark tendencies.
I'll post the url for the story I refer to shortly.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: awshucks
Posted: Sun Mar 26, 2006 6:33 am
Here's the URL
theintelligencer.net/business/articles.asp?articleID=3732
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: TomfromCT
Credit Expert (100+ Posts)
Posted: Sun Mar 26, 2006 7:44 am
The scary part here is how they kept the jack in minimum payments mostly a secret until the BK laws changed.
The only exception is BOA. They took a big hit on their bottom line but their decision stands out as admirable in a business ***** bent on making indentured servants of us all.
And with the universal default thing now - just applying for a new loan can potentially mean a jacking of your rates.
I think the new situation is sooooo far over the top in favor of the cc's that it won't last. Or at least we will find out if gov't for the people, by the people has in fact ended in the USA.
_________________
Average credit score: 709 !!!!!!
WOOOHOOOOOO
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: maddybeagle
Credit Expert (100+ Posts)
Posted: Sun Mar 26, 2006 9:16 am
Here is what discover card did with my 2-cycle.
More specifically, made a purchase of around 500 bucks on 12/21/05 which appeared on my 1/27/06 statement. Paid the min. payment but no finance charges. The next statement on 2/27/06 charges me interest for the CURRENT billing period and the PREVIOUS billing period. So yes, the retroactively erase the grace period all the way back to the purchase date.
Always pay in full
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 4:18 PM
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