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Can credit card companies increase your interest rate on prior purchases with out being late?
Wiki User
∙ 12y ago
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.
Wiki User
∙ 12y ago
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Where does credit card companies get the funds to pay for customer purchases?
You pay your bill at the end of the month, and they tack on the interest.
Is Discover an interest free credit card?
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.
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.
What is the current interest rate of Visa credit card compared to five years ago?
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%.
How debit card different from credit card?
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.
Where does credit card companies get the funds to pay for customer purchases?
You pay your bill at the end of the month, and they tack on the interest.
Consumers should be concerned about high interest rates because high interest rates?
High interest rates increase the cost of taking out a loan, making credit purchases more expensive.
What company has the lowest interest credit cards?
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.
What companies provides interest free credit cards?
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.
Is Discover an interest free credit card?
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.
Are purchases account is increased by a credit and decreased by a debit?
Purchases account is personal account in nature so debit means increase and credit means decrease.
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.
How do credit card companies earn profits?
Credit card companies earn profits by charging interest.
What is the current interest rate of Visa credit card compared to five years ago?
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%.
How debit card different from credit card?
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.
Do you get the same rate on credit card cash advances as you do on purchases on that card?
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.
Where can one find credit cards with 0 on purchases?
There are many credit cards that someone can get with zero purchases required. Credit cars like Discover, Capital One, American Express and Bank of America all offer cards with zero purchases required.
