Credit Card Interest Rate
Although the recent Credit Card Act of 2009 bans retroactive interest hikes on current balances, it does not put a
cap on the maximum credit card interest rate that a company can impose on a credit card.
In fact, federal law does not set any nationwide limits on how much credit card companies can charge their
All states except Delaware and North Dakota have usury laws that regulate interest rates on all kinds of loans.
However, these laws only apply to banks based within and cannot defend consumers who borrow from lenders
outside of their state. Here’s an example. Say you’re from Pennsylvania but your credit card is from a bank based
in Delaware. This would entail that the card company follows the laws of Delaware on loans and interest rates.
The only way to find out if your credit card company has a maximum credit card interest rate is to
check the company’s terms and conditions - which usually just states that rates can be changed without prior
notice. They even state that the company can raise interest rates if the cardholder is late on any of his/her bills
(not just on the credit card).
The average credit card interest rate in the US is 29%. This usually applies to customers who are into universal
default for failure to pay one or two bills. However, there are reports that the real maximum credit card interest
rate imposed by companies can reach an all time high of 33%.
So, how can you avoid the maximum credit card interest rate? Well, here are few tricks that you can do to
not get shocked by the interest rate that you get on your next bill. First, you can do a balance transfer to a low
interest credit card. The transfer fee is only 3% of the balance, and this can prevent you from reaching the
maximum credit card interest rate. The second is to get in a hardship program. This is something that most
cardholders are not aware of. In this program, the creditor will reduce your interest rate to 50% or, in some
cases, even lower it further to 0% for the first six months. You just have to stop using your credit card since
applying for this program will mean credit card suspension. The third thing that you can do to avoid the maximum
credit card interest rate is to get credit counseling from a legitimate, non-profit organization. Their debt
management program will help you not only to manage your debt but to settle it in the most convenient way
Source: Credit Cards For People With Bad Credit Rating
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