Reply
Valued Contributor
clocktick
Posts: 1,603
Registered: ‎12-07-2008
0

Re: Cit diamond preferred card APR 21.99% , Why ??????


GB44 wrote:

scientifics wrote:

Usually cards with really good intro APR offers don't have amazing interest rates because they need to make money somehow. The best APR cards are non-reward, non-intro APR cards.


I heard that most people don't payoff BT's within the required time and that is when the banks make their money with the higher interest rate.

 

Has anyone every confirmed this to be true?

 


 


I don't know if it's "most people" but I'm sure the banks are hoping it is!  I see it as people believe they will pay it off in that time.  Some succeed and with others, life happens.  The time comes faster than they thought and, perhaps, they lessened their payments over the months thinking they will "catch up" by the time the offer expires.  Then it's too late and all of the large fees come back.  I'm sure it happens often to people who really intended to have it all paid back.  It's bound to happen to some and I'm sure that's what the banks are counting on! 

 

 

Are they still allowed to charge the full interest on the entire initial balance even if one paid it down significantly?  I don't know if the new laws now prevent this.

11/30/08 TU 648 EX 672 EQ 656 SEPT 2014 TU 787 EX 789 EQ ???
Amex BCP $24.1K/Clear $8.5- Sallie Mae $27.5 -Cap One QS $7.5 - Chase Freedom $7.5/United $5k/CSP $20k/Ink- Citi DP $9.5/Dividend $13k/HHHx2 $15k/16.4/Reserve $4.5k Best Buy $1940 HD $1701- Discover IT $15k - Elan $8k GEMB Lowes $20k - Macy's $2k - Kohl's $800




Starting Score: 648
Current Score: 736
Goal Score: 765


Take the FICO Fitness Challenge

Frequent Contributor
birjest
Posts: 351
Registered: ‎09-23-2011
0

Re: Cit diamond preferred card APR 21.99% , Why ??????

[ Edited ]

GB44 wrote:

scientifics wrote:

Usually cards with really good intro APR offers don't have amazing interest rates because they need to make money somehow. The best APR cards are non-reward, non-intro APR cards.


I heard that most people don't payoff BT's within the required time and that is when the banks make their money with the higher interest rate.

 

Has anyone every confirmed this to be true?

 


 


I bet it does happen.  Again, some people may not have the intent, but it goes like HELOC.  People would take the HELOC out to pay off all the bills, wipe then clean, but soon afterward, they take vacations, splurge, and now they ran their cards back up.  OH, by the way, they now have a HELOC that have to be paid back.  BT can be you best friend....or it can be like a student loan, it just keep hanging around:smileyvery-happy:

11/15/13 EX 685(MY FICO) EQ 657(MY FICO) TU 659 (MY FICO).

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}