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Can a credit card just raise interest to 29.99 percent without good cause?
Wiki User
∙ 13y ago
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 !
Wiki User
∙ 13y ago
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How does bankruptcy affect interest rates on loans and credit cards?
It cause interest rates to rise.
Will you pay a higher interest rate on a poor credit loan?
Interest rates are directly tied to your credit history. The company making the loan needs to make money, so your poor credit record will cause them to charge you higher interest.
Can you settle a credit card for less if you have good credit?
If you have good credit and have lost your job or had a reversal of finances for some reason, talk to them . If they know there is a possibility of you going into bankruptcy, they would rather settle than pursue collections.Do NOT do this without legitimate cause. That would be fraud.You can also negotiate your interest rate. But ASK. They will never OFFER to help.
What are common drawbacks of zero interest credit card offers?
Credit card companies generally make up the loss of money from a zero-interest card by setting very harsh late fees. Failure to make a payment in time can cause a sharp spike in money owed to the company.
Can you use a student loan to pay off credit cards?
Yes, you can. However, you may be just delaying the issue without solving the cause, because you eventually will have to pay the loan. In addition, you are adding the costs of fees, interest rates, late payment charges, and compounding interest to the cost of your original purchase. If you choose to do this, cut up all but one card and pay that one off each month. This will help you improve your credit rating and help you avoid taking student loans for other expenses.
How does bankruptcy affect interest rates on loans and credit cards?
It cause interest rates to rise.
Will you pay a higher interest rate on a poor credit loan?
Interest rates are directly tied to your credit history. The company making the loan needs to make money, so your poor credit record will cause them to charge you higher interest.
What interest rate will cause 5000 to grow to 5618.00 in two years?
six percent
Can you settle a credit card for less if you have good credit?
If you have good credit and have lost your job or had a reversal of finances for some reason, talk to them . If they know there is a possibility of you going into bankruptcy, they would rather settle than pursue collections.Do NOT do this without legitimate cause. That would be fraud.You can also negotiate your interest rate. But ASK. They will never OFFER to help.
What are common drawbacks of zero interest credit card offers?
Credit card companies generally make up the loss of money from a zero-interest card by setting very harsh late fees. Failure to make a payment in time can cause a sharp spike in money owed to the company.
Will a Notice of termination of tenancy without stated cause affect your credit like an eviction?
Only if the landlord files a court case, or reports the arrearage to the credit bureaus.
Can you use a student loan to pay off credit cards?
Yes, you can. However, you may be just delaying the issue without solving the cause, because you eventually will have to pay the loan. In addition, you are adding the costs of fees, interest rates, late payment charges, and compounding interest to the cost of your original purchase. If you choose to do this, cut up all but one card and pay that one off each month. This will help you improve your credit rating and help you avoid taking student loans for other expenses.
Do bad credit reports make it difficult to buy a house?
Yes, a bad credit report can cause you to be either be declined for a new home purchase or to have a higher interest rate. Either way, a poor credit report can make it more expensive or impossible to purchase a new home.
What is the impact of defaulting on unsecured loans?
You can be turned over to a collection agency that can make your life miserable. It can go on your credit report which lowers your your credit score. Further credit is harder to get and interest rates on any loans you are able to get will be higher. Also, some companies check credit reports prior to hiring so if you have a low score it may cause you not to get hired for a job.
What are some of the advantages and disadvantages of having credit?
The disadvantages (which can cause money problems) is that credit is still too easy to gain. Credit is good provided you can pay back in time and can absorb the interest over the term. Those who take out credit they can't afford, soon realise they are in a downward spiral to an over whelming that they have no chance to get out off - often leading to the loss their home.
What are some of the consequences of bad credit?
Having bad credit can negatively affect a person in several different ways. A bad credit score will cause a person not to qualify for good interest rates when applying for a loan or mortgage and they will likely have to pay a premium rate. Many employers are now checking credit scores as part of their hiring process so a bad credit score can actually keep one from getting a job.
Will a foreclosure increase interest rate percentages on credit cards with existing balances?
No, there is very little danger in this occurring. Missing payments on credit cards is the cause of increases in signature loan interest rates and reduced card capacity (which frequently happens in foreclosure situations). Most credit cards now have clauses that indicate a default in any other debt can lead to an increase in the interest rate of that particular card, however, this happens with other credit card defaults far more often than mortgage loan defaults. There is no incentive for credit card companies to make a mortgage payment default situation that much worse. This would cause a consumer's tight financial situation to spiral quickly out of control, and the likelihood of their getting any money would fall dramatically. The converse is also true for the mortgage loan. Be real: Compare being homeless or crowded renting to defaulting on credit card(s) and enduring higher credit card interest rates. Unless the mortgage/home value is extremely inverted, it is more important to pay the mortgage on time, rather than worry excessivly about defaulting on credit cards.
