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Answered 2011-12-27 02:03:16

Yes. There are several reasons a credit card company can do this. Being late is only one of them. Your credit card agreement spells them out in plain English. You may have to dig into the 3 or 4 page document, but the answers are all there. Most credit cards have a web site you can look up your credit card agreement. They vary from bank to bank, but essentially they have the ability to do this.

The credit card reform bill that recently became law has made some of these reasons illegal: like you were late paying OTHER bills. But many reasons for raising rates remain.

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You pay your bill at the end of the month, and they tack on the interest.


High interest rates increase the cost of taking out a loan, making credit purchases more expensive.


Interest fees vary depending on the credit card company. Most companies apply interest based on your credit score and credit history. To obtain a lower interest rate, increase your monthly payments or make payments more frequently. The more payments you make the lower your interest will be.


Most companies provides interest free credit cards. However, that service is not permanent, and is only provided temporarily, mostly for new customers that have just signed up for credit cards with their company. However, Visa or MasterCard provide credit cards with really low interests, and have a rewards program which you can participate in by making purchases with their credit cards.


Purchases account is personal account in nature so debit means increase and credit means decrease.


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.


Credit card companies earn profits by charging interest.


In the whole run, no it is not. Most credit cards tend to lure customers in by boasting how they have an interest free credit card for you. That is true, unless you forget to pay for one month or only pay part. Then the interest rate will suddenly kick in and will very quickly increase until you have paid off for your purchases.


Credit card interest rates often depend on previous credit rating and type of purchases. A basic card that is used for purchases online or at stores has an interest rate currently of approximately 11%. Five years ago in 2008, the average interest rate was 13%.


When you used your debit card, your purchases will be drawn against your savings or checking account, while when you use your credit card, your purchases will be charged to the credit card issuer, which will collect from you with certain interest added to the total amount of your purchases.


It depends on the credit card. Most of the time, cash advances are subject to a higher interest rate than purchases. Credit card interest rates are higher on cash advances. Check your card for specific details.


Companies extend credit to their customers for several reasons. One reason is financial. Companies make money from charging customers interest on their credit lines.


Surprisingly, several credit card companies offer zero interest credit cards. Discover, Barclay and Citibank all offer zero percent interest for a specified time period.


Buying goods on credit allow you to enjoy your purchases before they are completely paid for. Advantages to using credit for purchases include that you build up your credit by making payments on time and have a higher credit line available with lower interest rates.


There are a number of companies that offer zero percent interest on credit cards. Some of those companies include Barclays, Tesco, Virgin, MBNA and Natwest.


Most of the Major Oil Companies offer Fuel Cards that gibe you rewards points for your purchases. Some of the Major Companies are Phillips 66 and Quick Trip. Most Major Credit Card Companies also offer Rewards for using their Credit Card for Gas Purchases.


With the interest you pay on what you borrow.


There are many companies that offer low interest credit cards. Some include Visa, Capital One, the Pentagon Federal Credit Union, Chase, and CitiBank.


There are a great deal of credit card companies that offer low interest balance transfers. These companies include Citi, BankAmerica, Discover, and Capital One.


They will offer you a low introductory interest rate which will encourage you to use your credit card.


Credit cards with zero interest on balance transfers are to be found with up to two years 0% although a fee may apply depending upon the company promoting the offer. Most cards with 0% interest on purchases will give the customer 6 months interest free on purchases.


Before the credit card companies were able to increase the rates with or with out notification, but now they have to notify if any increase rate or annual fee, within 45 days notification. When this happen, a simple call to the credit card companies to opt out from the fees or increase of the APR will work. Check what are the cons with the credit card companies, since they can rise the minimum payment or make it harder to pay, also read their notices for any restrictions or considerations



The credit card statement lists all of the purchases a person makes during the month using that card. It shows the total owed, interest owed, and details about the card and purchases.


Green credit cards can be found anywhere in which there is a option for green credit. However not many companies offer green credit cards because the company loses some money on the purchases you make.



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