<p>I admit it … I’ve done a poor job of teaching my kids how to handle credit. I suggested they live within their means, use credit modestly, never miss a payment, and preferably pay off credit card balances in full each month. My D’s credit card company has reviewed her charge and payment history … and then raised her standard interest rate to 35.8%. I can’t help but wonder what her rate would be if she missed a couple payments.</p>
<p>I don’t even know my credit card interest rate. It doesn’t matter what it is if you pay it in full every month.</p>
<p>My husband just cancelled a card that raised its interest to prime plus 21.5%. He thought that was outrageous, even though he always pays the entire amount. The card company right away offered to waive the new change for him. He said, absolutely not, I’m cancelling. We’ve since gotten two letters inviting him ‘back.’</p>
<p>Sometimes saying NO clearly and loudly gets the message accross.</p>
<p>When did a rate like 35.8% become allowable under the law? That’s outrageous. </p>
<p>Does anyone remember the original “Fun With Dick & Jane” movie? There’s a scene when Jane Fonda and (what’s his name) are at the bank to discuss their loan. The banker proposes an interest rate and Jane exclaims, “18%?!?! That’s illegal!” </p>
<p>Ah, the good ol’ days.</p>
<p>Smart people never pay interest :)</p>
<p>ATOmom said it better than I could: keep the card, pay it off every month.</p>
<p>Wouldn’t an 18% interest rate be sufficient inducement to pay the balance off each month?</p>
<p>I think the usury laws got thrown out the window.</p>
<p>35.8% - I’m stunned.</p>
<p>I agree with the topic title: ** Nothing says “We don’t want you” like a 35.8% interest rate. ** So does your D take the not so subtle “hint” and cancel the card?</p>
<p>Doesn’t American Express still charges interest even if you pay it in full every month? I would quit any card that charges that much. They are clearly saying that they do not want you. We pay in full every month, we use credit cards as much as possible because, then you actually earn $$ (I know, it is not fair). If they all start charging even if you pay in full every month, we would stop using them and switch to line of credit that we have on our house which we use currently to buy cars (no plans for that in a near future, although one needs to be replaced)</p>
<p>My 18 year old freshman can’t even get a card. She was turned down by BofA even though her account is there and it was a low limit card. She was turned down by American Eagle. In contrast four years ago my son got a zillion offers. He has a low limit card with BofA.
Any ideas on how the younger can get a card? She has no credit record with the credit reporting agencies so she keeps getting turned down.</p>
<p>Ebeeeee,
Do you belong to a credit union? My kids got their first credit cards in association with our (mine and kid’s) joint checking accounts. The accounts and cards are primary to the kids (their SSN on record).</p>
<p>
No. And there’s no yearly fee. Have no idea what the interest rate is.</p>
<p>When I last had Amex, there was a yearly flat fee and no interest. You were expected to pay it off in full every month. Maybe things have changed…</p>
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</p>
<p>They do if the post office destroys the envelope with the payment. Not only did I pay interest on a huge bill (vacation was on that bill) but I got a $100 fine for “missing” a payment. Two months later I got the envelope back, a big gummy blob with someone else’s mortgage payment stuck to it, with a sticker on the outside that said “Undeliverable”.</p>
<p>Neither the credit card company nor the post office thought much of my demands for reimbursement.</p>
<p>Hey guys…be careful about canceling a credit card. It can hurt your FICO score. Google it for more info.
My card company recently increased my interest rate to something in the 20s. Egads. I pay my full balance every month…but I missed one payment by two days and they charged the finance charge AND a late fee. Lots of cash. Made me very angry. So I applied for another card…got 0% APR for a year and a high credit limit (good for FICO) but did NOT cancel my other card. Use it for small things and pay it off.<br>
FICO scores are REALLY hard to figure out. I think some reform is needed here!</p>
<p>I suggest paying them online.</p>
<p>midmo, that surprises me. I pay everything in full every month. There was an incident like you describe with one of my cards. I called the credit card company and they reversed the interest charges.<br>
Regarding my question about a card for DD, unfortunately we do not belong to a credit union.</p>
<p>Why do you need FICO score? When do anybody use it?</p>
<p>By the way D. got her credit card also from Credit Union where she has account with balance.</p>