“The 30% threshold definitely seems to be an important psychological barrier,” Ted Rossman, industry analyst for CreditCards.com, said in the report. “These cards are issued by banks headquartered in Delaware, South Dakota and Connecticut — three states that do not have maximum credit card rates. So, they could charge more, but they’re choosing not to.”
-CNBCMoney
Is it just not having the credit to get a 0% interest rate card? Or Credit to support a 15% interest rate card? Or lack of knowledge that this is a bad interest rate?
Why is it so easy to sucker people in. And if it's happened to you no shame, but can you explain why?
@Remedios wrote:I've inserted the link to the article you were quoting, because when article is added, the title of your thread is somewhat misleading.
This has very little to do with credit building, and everything to do with store cards, which fall under "It is what it is".
Credit building and associated APRs are whole another animal.
That's why we should include links to articles and not a tiny quote that's completely off the mark.
Sorry wasnt trying to spread misinformation. Just looking for clear insight. Will be posting my interest rates on here ASAP. Stand by.
Here is my interest rates as of yet. I haven't encountered 29.99%. I would really like to know if they are okay for first timer... or just meh.
@Anonymous wrote:
@californiaboy935 wrote:“The 30% threshold definitely seems to be an important psychological barrier,” Ted Rossman, industry analyst for CreditCards.com, said in the report. “These cards are issued by banks headquartered in Delaware, South Dakota and Connecticut — three states that do not have maximum credit card rates. So, they could charge more, but they’re choosing not to.”
-CNBCMoney
Is it just not having the credit to get a 0% interest rate card? Or Credit to support a 15% interest rate card? Or lack of knowledge that this is a bad interest rate?
Why is it so easy to sucker people in. And if it's happened to you no shame, but can you explain why?
I can see this being moved from the Credit Cards forum, just FYI.
You have answered your own questions really. Regular people out there are not as well-versed about credit as many here are; therefore, when they have bad credit and have tried for a prime card only to be turned down, they apply for the First Premier, Credit One, Bank of Missouri et. al. card offers that come to their mailbox.
I believe a lot of people misunderstand secured credit cards and there is a psychological barrier to sending a bank $200-$500 to secure a good credit card because the above mentioned banks will offer them an "unsecured" card. Oddly enough, once those First Premier fees are tacked onto the card, the card holder might as well have sent $200 to Citibank, Capital One or Discover for a good secured card.
Provided the card has a grace period and the card holder never pays any interest, the interest rate is of no consequence.
I will not judge people that fall for these types of cards; and there are people that cannot get a secured card for one reason or another so these cards are their stepping stone. I will also not judge the banks for trying to make a buck. It is everybodies responsibility to understand what they are applying for and to make a decision that best suits them and their needs.
Thank you for your response. I feel the same way. I think interest is dumb, but during these times many of our lowest income people have to rely on Credit Cards as their only form of "Income" and many have high interest rates such as this. I think that during COVID and marker downturn many of the most succeptable markets for these card issuers are hurting and banks take advantage of this.