Jim asked in Business & FinancePersonal Finance · 11 months ago

I have excellent credit and acquired a card with 7.99% last month.  Why do cards like Chase, Citibank and Discover charge 14.99% and 16.99%?

Update:

I don't carry a credit card balance, it just amazes me as to how they can charge such a high interest rate.

6 Answers

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  • Anonymous
    11 months ago

    You're lucky, 7.99% for a credit card is very low.  Since you don't carry a credit card balance, it really doesn't matter to you does it?

  • 11 months ago

    Because they can make more money and many customers don't mind -- or at least, they don't until it is too late.

  • 11 months ago

    My daughter's card is 7%.  If you shop around and have good credit, it is not hard to find that rate.  Personally I use a credit card as a convenience and pay it off in full at the end of each month.  If I need to borrow money, I can get a better rate than 7%. 

  • 11 months ago

    Did the credit card tell you how long the 7.99% is good for?

    Are there other fees with it?

    if the cc does not state how long that rate is good for, it can change at any time.

    If it's 7.99% today, expect to get a change of interest rate email in a few months.

    On the flip side, when you pay off your bills each month, it doesn't matter what the interest rate is. 

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  • Anonymous
    11 months ago

    The same reason anyone charges for a loan; profitability.  Carrying a credit card balance is effectively a loan.  Banks, credit card companies, Credit Unions, and your Uncle Bob all charge interest for a loan.  Why 15%?  Because it's legal and because the market will bear that rate.  If no one would take a credit card @ 15% then no one would offer a credit card @ 15%. 

  • Dze
    Lv 7
    11 months ago

    give it some time .. they'll fix that little oversight for you lol ...

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