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How can credit card companies charge an over-the-limit fee when their interest put you over?
Wiki User
∙ 11y ago
You agree to pay the principle and the interest when you enter into a credit agreement; they charge interest because they extend you a line of credit that allows you to have things you otherwise could not afford and they use their money, not your. Failure to pay both the interest and principle results in an over-limit fee.
-- I don't think this answer addressed the question. The question was not how can a bank give you an over the limit fee when you don't pay the interest. It asked how they can charge you an over the limit fee when they apply interest in a billing cycle and that puts you over the limit. The answer is the card holder agreement. You agree their interest can put you over the limit resulting in more fees for them. Just another of a few dozen reasons to avoid credit cards completely.
Wiki User
∙ 11y ago
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What is credit card interest?
Credit Card Interest is basically the way credit card companies make money. They charge you interest for borrowing their money. But usually if you pay your bills on time and don't have any fees, they won't charge you any interest.
Can credit card companies close your account and continue to charge interest on the balance?
Sure can, a dirty deal.
What companies offer free loans for individuals with no credit?
There are very few companies that offer free loans for individuals with no credit. It would be best to get a personal loan from someone you know, as they will not charge interest.
What is the highest interest rate allowed by credit card companies to charge consumers?
It is regulated by state law, so it depends on where your credit agreement is in effect. Where I am it's 33% annually.
How can you be approved for a payday loan?
Most payday companies will approve anyone, as that is their business and in their interest to do so. The catch here is that they will charge you over 700% interest, this is just for those with good credit. If you have bad credit, the rates will be much higher.
What is credit card interest?
Credit Card Interest is basically the way credit card companies make money. They charge you interest for borrowing their money. But usually if you pay your bills on time and don't have any fees, they won't charge you any interest.
Can credit card companies close your account and continue to charge interest on the balance?
Sure can, a dirty deal.
What companies offer free loans for individuals with no credit?
There are very few companies that offer free loans for individuals with no credit. It would be best to get a personal loan from someone you know, as they will not charge interest.
How would credit card companies exist without interest fees?
I'm not sure they would, but credit card companies charge a variety of other fees including late payment fees, over limit fees, service charges, etc. etc. Also, most consumers don't realize that credit card companies charge the merchant a fee of 3% to 9% for the transaction, in addition to charging the cardholder interest.
Is it lawful for credit card companies to charge unfair high credit card rates?
There are legal limits to how much interest can be charged. Usury rates are different in each state, most credit card companies are smart enough not to break the law.
What is the highest interest rate allowed by credit card companies to charge consumers?
It is regulated by state law, so it depends on where your credit agreement is in effect. Where I am it's 33% annually.
How can you be approved for a payday loan?
Most payday companies will approve anyone, as that is their business and in their interest to do so. The catch here is that they will charge you over 700% interest, this is just for those with good credit. If you have bad credit, the rates will be much higher.
Which companies offer interest free credit cards?
Chase, Citi and Capital One are companies that offer interest free credit cards. These interest free credit cards most often do not stay interest free. They are interest free for a certain amount of time.
Can a credit card just raise interest to 29.99 percent without good cause?
Credit card companies can do what they like with interest rates. You are effectively borrowing money from the credit card company (they pay the store for the goods you buy) then you pay the card company back. They are entitled to charge for the service they provide. The interest they charge pays for the production of the cards, the offices, computer systems and staff - and the interest THEY pay on the money they are lending you !
How do credit card companies earn profits?
Credit card companies earn profits by charging interest.
How many credit card companies operate in Delaware?
Bank of America, Chase, Barclays, and ING Direct (among other smaller companies) are based in Delaware. Most credit card companies in the US are based in Delaware because of usury laws, or rather, lack thereof. Usury laws regulate the interest rate on things like credit cards, but Delaware has no limit, so credit card companies based in Delaware can charge as much as they like for interest.
Do Loan Companies charge too much for the loans they give you?
Loan companies can charge a lot for loans that they give out. Much of it depends on your credit score. If you have a really good score then you may get a really low interest rate and not have to pay much, but if you have bad credit or no credit, then they can raise the rate really high and then you will end up owing them a lot of money.
