Credit Cards - Intrest, Fees, and Bullshit

[Apoc]

[Dave]

Late fees suck but its one of the many ways the CC companies make money. Usually you can get one freebie and then you're screwed. It used to be that you could also call every 6 months - 1 year and ask them to reduce your APR, however I fear those days are gone now since APRs are skyrocketing everywhere.

$40 is a little excessive for a late fee, but I would imagine it is probably in line with current trends (APRs and fees are going up to make up for lost revenues due to recent CC Reform laws). I honestly don't know what my late fee is now, and I'm pretty sure there isn't a grace period either. Also, if you ever miss a payment or are late, your credit score can be damaged and more than likely your APR is gonna go up.

Carrying a balance on a credit card is not 100% bad. It actually has a positive effect on your credit score as long as you aren't overly debt-heavy. We have carried credit card balances and one tactic I have found is to make use of the 0% & 2% checks that a card will occasionally send to put all your CC debt on one card at a low APR. However, you MUST evaluate the up-front cost of the transaction fee to make sure it is cheaper than what your finance charges would be in the same term - otherwise you're just giving them extra unnecessary money.

I have an Amazon.com card at 8.99% that gives great reward points that I use for everything, and an additional Chase rewards card that I almost never use but have as an in-case-shit-happens card (keeping an account open for a long time is also beneficial to your credit score).

Jeff, honestly, it sounds like your card's terms changed at some point and you missed the notification of the increased late fees and elimination of a grace period. Life's tough and you know it. Shop around to see if something out there is better suited to what you need (rewards, fees, credit limit, etc.).

[Jeff]

What exactly is your issue? It not worth reading but it's worth going to the troube to make a picture for? If someone doesn't :bow: when you type do you always turn into an :bootyshake: ? Go back to being an MM troll. :roll:

@ Dave

Thanks for a constructive reply. They did what was right. They credited the first mistake and held me on the second. Really there was no excuse for me to have not even looked at my bill until the day after it was due. I should have at least opened it when I got it and I would have seen the fee and all this would have been avoided. I do know that they do not report to the Credit Bureau until 15 days late. I have carried balances in the past (when in college) for credit building, no longer. I still plan on changing cards though. If nothing else this little scandal got me to look around at what is out there. I think I can get the 8% from the bank and paying everything on the same website is pretty nice.

[Apoc]

What exactly is your issue? It not worth reading but it's worth going to the troube to make a picture for? If someone doesn't :bow: when you type do you always turn into an :bootyshake: ? Go back to being an MM troll. :roll:

Sorry, I didn't realize you were the only one who could post amusing pictures in this thread. Lighten up. :thumbup:

If you think $40 for a day late is bad, you should try accidentally forgetting to pay for your mortgage. Most lenders, including credit card companies, levy a ridiculously large fee for one minor screw up. With the credit crunch, a lot of grace periods are just simply going away and they send you one little pamphlet to tell you in fine print. I'd recommend signing up to receive changes via email, so you don't have to wade through what seems to be junk snail mail to find any possible changes. I'd also check to see if you can adjust the payment due date on whatever card you go with. A lot of CC companies do it and making it close to some significant date (paycheck, other bills) has made it a lot easier for me to remember.

[Jeff]

Yeah, I try not to be late on my mortgage. I usually send it online on the first. I missed it once back when I used to mail it and I mailed it out on the 5th. I got a reminder call from the lender on the 6th telling me they had not received payment. They don't do a a late fee until the 15th. New company (just refinanced) applies the late fee on the 16th and its $40. Woman at chase told me that the new credit legislation mandated all credit cards be due on the 10th of the month....but my AMEX is due on the 8th. Could this be because it is a 'charge card'? I mean, it seems like a high interest credit card to me. (28% or some stupid shit)

[Apoc]

Woman at chase told me that the new credit legislation mandated all credit cards be due on the 10th of the month....but my AMEX is due on the 8th. Could this be because it is a 'charge card'? I mean, it seems like a high interest credit card to me. (28% or some stupid shit)

My Chase United card is due on the 20th, which I set.

Sounds like that card is a high risk lender. They tend to charge ridiculous fees/finance and have very rigid rules about payment. The new legislation mandates that lenders can't change the due date month to month (maybe they picked the 10th for all their cardholders) but it doesn't actually say what day of the month it has to be.

[.RJ]

But the new legislations are supposed to be GOOD FOR THE PEOPLE!!!! Dont you hear the radio ads about the secret programs they are hiding from us? :lol:

Like that secret program called "stop spending more money than you earn"....

[Jeff]

My Chase United card is due on the 20th, which I set.

Sounds like that card is a high risk lender. They tend to charge ridiculous fees/finance and have very rigid rules about payment. The new legislation mandates that lenders can't change the due date month to month (maybe they picked the 10th for all their cardholders) but it doesn't actually say what day of the month it has to be.

I mean...its a Chase Freedom card. I'm not sure how "high risk" it is. The AMEX just has a high rate because its an AMEX...you aren't really supposed to carry a balance on them. Hence the term "charge card." At least that is how it used to be. Its just a regular green AMEX I don't ball hard enough to have like a Centurion or something like that (black card).

[Apoc]

I got the statement for my Wachovia card today, so I figured I'd update.

My rate is 7.24%. My late payment fee is $39 and if I'm late, my rate goes up to 24.24%

[Jeff]

Good rate! I got the call for sure that my fate on the new card will be 8.25. So still not bad. Fee will be $39.99. The card I paid late...twice...still has a 10.25 rate. I only got charged the twenty-whatever percent for the day over it was late.

[Ryan T]

I carry a credit card that I rarely ever use. It's a Mastercard through the bank my mom works for. Last time I looked the rate was like 8.59% but I haven't looked at it in years. I also have a bestbuy card that's 0% for 36 months that I've been using to stock up on stuff for the house.

[WRXtranceformed]

So I finally found a credit card I feel good about. Dumped the Chase Freedom rewards card for the Barclays US airways MC. Qualified for Premier World status, so I get:
First class / Priority security check in
Zone 2 boarding (love this)
Two $99 companion vouchers per year
One US Airways club pass per year
30,000 intro bonus miles
One mile per dollar

Chase people did NOT want me to cancel their card. Their rewards program was so lame though...you get 5% on some stuff, but you have to sign up for the bonuses like every two months or something. They offered me 2500 rewards points to stay, which is equivalent to like $25.

Only cons to US air MC are the annual fee ($89.00, worth it to me for as much as I fly) and the interest rate is high, which doesn't bother me BC I don't carry a balance. Apparently BoA has a US air debit card that is $30.00 per year (1 mile every $2.00) which I'm debating...but its annoying to have to pay yearly fees on 3 cards (corporate AMEX rewards program is $75.00).

[Ryan T]

Maybe it's just me, but I don't care for credit cards. The only time I use them is when they are 0%. I got a 0% for 18 month card to pay for the wedding, paid it off before the interest free time came due. Then cancel the card. If I have another big purchase I want to make (like a gun safe soon) I'll get another 0% interest for 12 or 15 months, buy the safe, pay it off, and cancel it. For everything else I just use a debit card.

[Mike]

I welcome having 1-3% more money.

[Jake]

Maybe it's just me, but I don't care for credit cards. The only time I use them is when they are 0%. I got a 0% for 18 month card to pay for the wedding, paid it off before the interest free time came due. Then cancel the card. If I have another big purchase I want to make (like a gun safe soon) I'll get another 0% interest for 12 or 15 months, buy the safe, pay it off, and cancel it. For everything else I just use a debit card.

I mean, I'm a strong believer in the "if you don't have money for it, don't buy it" philosophy... save for bigger things like new cars, homes, etc.

However.

I just got my first credit card at the age of 22. This was a multi-month ordeal that only worked because my father knows the VP of a small bank in like, Nebraska or something. I've had no loans before - car or school - and figured that having bills in my name since I was 18 would be a fine start to building some credit.

Well, I go to sign papers for our apartment, and everyone wants massive deposits. Why? Because I have ZERO credit history. So, okay fine, I'll go get a credit card to prevent this in the future. Couldn't get one anywhere, even with dad co-signing.

I have no idea what my interest rate on this stupid thing is, but I don't carry a balance. It's probably like 21% or something.

Just ironic that for having money and paying things on time, but not "living the dream" of OMG LOANS EVERYWHERE, I can't get a basic, simple, low-limit credit card.

[V1GiLaNtE]

^ Really?

I got a Discover Student Card with no hassle whatesover

[JustinG]

Student cards are easy to get, very low limit, very high interest. They will give those out all day long. Figure 90% of the student card holders will make a few late payments, so they profit on the late fees, and hiked up interest rates. I was retarded and saw free t shirts on the commons, I think I signed up for like 4 credit cards. Never used them though.

Now I only have 1 CC I use, and its a Chase Slate card, that has no interest til June, and its hopefully being paid off before June. They are nice to have in a pinch, or I typically take advantage of the no interest til XXXX offers. I keep getting harassed by Discover and Citi about why Im not using those cards anymore. They even lowered my interest rate to a manageable rate. But, NO THANKS.

CC saved my ass on a road trip in college, when the car broke down in the middle of BFE, between H'burg and VT on 81, we had to rent a car. I was the only one with a CC, and you can't rent a car with a debit card. Atleast you couldnt....

[ScottyB]

Maybe it's just me, but I don't care for credit cards. The only time I use them is when they are 0%. I got a 0% for 18 month card to pay for the wedding, paid it off before the interest free time came due. Then cancel the card. If I have another big purchase I want to make (like a gun safe soon) I'll get another 0% interest for 12 or 15 months, buy the safe, pay it off, and cancel it. For everything else I just use a debit card.

i've had the same cards for about a decade and don't carry any real balance, so I'm curious - does this tactic affect your credit score? because it sounds like a pretty sweet idea.

[Evan]

you really want a credit card for credit history alone

There is no reason not to have a credit card and pay it off every month.
More convenient, builds credit history, and as a bonus you get rewards for free stuff/money

[G.Irish]

you really want a credit card for credit history alone

There is no reason not to have a credit card and pay it off every month.
More convenient, builds credit history, and as a bonus you get rewards for free stuff/money

This. Just picked up the Chase/United card and in addition to getting frequent fucker miles I get to board in seating group 1 on every flight and I don't have to pay for the extra bag. There's a $90 annual fee but it's not due for 2 years and just the money I save on baggage fees would make it worth it anyway.