I missed a payment on a card I've had for 17 years. It's the first missed or late payment in years...like at least 10. It was already the highest interest rate at 13%. I work hard to keep my credit good
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See, MOST people pay no attention to the interest rate on the card once they sign up for it, and just assume it's the same.
many of the cards don't even charge a late fee, as such, so that nothing pops up to trigger the notice of the consumer that their interest rate just doubled.
because a 10% increase on a $2300 (US average balance) card account is $230 extra bucks per year. times 100,000 card users, and the CEO gets a new Ferrari. Times 3 million cardholders, and now you're talking real money.
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See, MOST people pay no attention to the interest rate on the card once they sign up for it, and just assume it's the same.
many of the cards don't even charge a late fee, as such, so that nothing pops up to trigger the notice of the consumer that their interest rate just doubled.
because a 10% increase on a $2300 (US average balance) card account is $230 extra bucks per year. times 100,000 card users, and the CEO gets a new Ferrari. Times 3 million cardholders, and now you're talking real money.
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