Usury

Posted by Michael on December 28th, 2006 filed in Finances

I was reading the fine print on the back of a credit card agreement. Don’t ask me why that interested me, it’s not exactly fun reading. I don’t like to keep credit card balances; I really dislike to be in debt. But sometime I’ll post something I’ve been studying, a way for the credit card companies to pay me.

Anyway, the fine print on the back says, “As of November 17, 2006, the standard variable APR for purchases is 15.24% and the standard variable APR for cash advances is 23.24%. However, all your APRs may automatically increase to the 32.24% variable default rate if you default under any Card Agreement that you have with us.”

Gadzooks. Credit cards can be as high as 32.24%? That’s absolutely incredible.

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4 Responses to “Usury”

  1. Jo Says:
    December 28th, 2006 at 10:04 pm

    That’s why I don’t have credit cards.

  2. Tony Says:
    December 29th, 2006 at 1:56 pm

    Just remember…they are not in business to do you any favors. It’s all about the money.

  3. Michael Says:
    December 29th, 2006 at 9:54 pm

    Yeah, but… I’m just astonished interest rates can go that high.

  4. Michael Says:
    December 29th, 2006 at 9:59 pm

    Credit cards used wisely can actually make you money. I pay off the balance each month and charge everything and earn points. I make $300-$500 in reward dollars each year.

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