Highest Credit Card Interest Rates
Have you ever thought about what if you miss a payment with you credit card company what will happen? Also what if you are a few days late with your payment, Can your credit card company charge you the highest credit card rate? If you are like most you may wonder if this is a real reality you could be dealing with.
So lets try to tackle these questions one at a time. Basically the short answer to the question is yes a credit card company is allowed to charge their customers any rate they like and believe is justified.
Q. Is there a legal maximum interest rate that a credit card can charge?
A. For all practical purposes, no.
Federal law sets no nationwide limit on how much credit cards can charge.
Card Protection laws
Basically the only law for card holder protection from fee’s and interest rates is legislature called the Credit Card Act of 2009.
With this Credit Card Act of 2009 it basically states that it can not change state or federal laws on interest rates, so credit card interest rates are still without limits. They are under no obligation or legislative laws to charge you the maximum interest rate on your credit card.
One of the best features to come out of this act is that you the card holder must to be notified in writing approximately 30 to 60 days before a change in your interest rate goes into effect.
Before this new law, you were legally intended to pay the higher rate based on your terms and conditions. The old law would have left you paying high fee’s. With the new law card customers are able to opt-out option to instead refuse the higher default APR, close the account, and pay the balance at the previous interest rate.
Highest Credit Card Rates
– Most cards max out around 29% for customers who have been thrown into universal default for missing a payment or two — and not necessarily a payment to that card. But we’ve heard of cards charging as much as 32%.
– If you are like many of us you need a credit card to buy things online, rent a car, buy airline tickets and much more. When you have bad credit and have no choice you might get approved for only one credit card. The interest rate could be a shocking 79.9 percent.
– The 79.9 rate is a special rate for the subprime credit cards as issuers who lend to the riskiest of borrowers try to figure out how to stay in business and comply with the new credit card reform law.
– The 79.9 percent and 59.9 percent annual percentage rates (APRs) on cards with $300 credit limits are issued by First Premier Bank. Now was this First Premier’s experiment with interest rates approach by subprime credit card issuers and marketers to find a way to stay in business despite reform laws that bans their most-common product: credit cards that carry huge fees.
Is this Legal? The answer is Yes, it’s legal
A national bank charging 79.9 percent interest on a credit card is legal — as long as the issuer fully discloses the terms as required by the federal Truth in Lending Act.
The national average for bad credit credit cards is approximately 14.15 percent in 2015.
CardExperts.net advice is to always be sure to read the fine print of any card offer and know your laws. For further assistance seek professional help about other options before signing up for offers you may have questions about.