Credit Card Companies Raise APR for Low Credit Score
Guest: arahad06
Post subject: Credit Card Companies Raise APR for Low Credit Score
Posted: Tue Mar 14, 2006 11:45 pm
Why do the credit card companies raise your APR if your credit score is low? often times your score is low because of your financial problems (you can't pay the bill on time). if you can't even pay the minimum due, how you going to pay the APR? i have an account in which i pay $35 interest every month and my balance never goes down...i just paid off 885 to lower my balance. nonetheless, i find it ridiculous that they ask for such high APR (RIP OFF). i just don't understand why they raise the APR so high...
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Guest: rapjunkie
Posted: Wed Mar 15, 2006 12:47 am
They raise the APR because of the higher perceived risk, and because that's how they make their money.
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Guest: db619196
Posted: Wed Mar 15, 2006 6:44 am
Remember a credit card is really an unsecured loan. So it makes sense that those who have paid late would have to pay more, simply because the risk of default is greater. On a personal level, I think the raised APRs are high, but when I think of it in terms of business, it begins to make sense.
David
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Guest: Board Monitor
Posted: Wed Mar 15, 2006 8:13 am
Good explanation guys. Still doesn't justify 30+% rates IMHO!
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CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: Credit Card Companies Raise APR for Low Credit Score
Posted: Tue Mar 14, 2006 11:45 pm
Why do the credit card companies raise your APR if your credit score is low? often times your score is low because of your financial problems (you can't pay the bill on time). if you can't even pay the minimum due, how you going to pay the APR? i have an account in which i pay $35 interest every month and my balance never goes down...i just paid off 885 to lower my balance. nonetheless, i find it ridiculous that they ask for such high APR (RIP OFF). i just don't understand why they raise the APR so high...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: rapjunkie
Posted: Wed Mar 15, 2006 12:47 am
They raise the APR because of the higher perceived risk, and because that's how they make their money.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: db619196
Posted: Wed Mar 15, 2006 6:44 am
Remember a credit card is really an unsecured loan. So it makes sense that those who have paid late would have to pay more, simply because the risk of default is greater. On a personal level, I think the raised APRs are high, but when I think of it in terms of business, it begins to make sense.
David
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Board Monitor
Posted: Wed Mar 15, 2006 8:13 am
Good explanation guys. Still doesn't justify 30+% rates IMHO!
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
Sign up for our free monthly e-mail newsletter!
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 11:55 AM
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