APR insanity!!! SMH...

[DoppelgangerD]

I received a letter in the mail today that the standard APR for the Synchrony TJX MC is increasing to 34.99%.

Holy mama!!! 

For reference, it's actually my wife's account, and she/I both have impeccable credit with scores well into the 800s and debt to income ratio in the 95th percentile.

ZERO adverse accounts and utilization less than 1%.

It's been like 17 years since I've paid any interest on a credit card and hopefully never will again, so the interest rates on any of our cards is inconsequential to me, but I just had to post this.

I remember the days when interest rates this egregious were actually illegal. SMH...

[gdale6]

Yes its insane, looked at the Exxon/Mobil card yesterday and saw they too want 34% interest. Time for some serious complaints to the CFPB, it may be legal but its morally grand usury.

[keekers]

That's wild!

[Anonymalous]

The prime rate has risen about 5% since the pandemic. If the high end of credit card APR is rising from about 30% to 35%, then that's just keeping up. There are a lot of problems with how credit card debt is incentivized and a lot of warning signs like increasing default rates, but the rising interest rates are a symptom of much broader problem, inflation.

The NCUA caps the APR of federal credit unions at 18%, so that's one way to get a (relatively) lower rate.

[GreatLife]

2 days ago my Care Credit M/C had a t&c change notice startung in June.

*APR going from 29.99 to 32.99 on statement balances not paid in full by the due date, including new charges from date of purchase if not paid in full by the next statement due date.

*Penalty APR a whopping 39.99 for an indefinite period of time; applicable after 2 late payments within 12 calendar months and includes any late payments during the 12 months prior to new APR effective date.

So much nastiness was in there but I can't recall everything.. TBH couldn't easily understand half of it. I've rarely carried a balance on the card and will make sure not to in the future.

[markhs777]

The days when Simmons Bank used have an APR of 6% are long gone, even they have 28% rates. No point in complaining. As you say just pay in full and the rate is 100% irrelevant.

[Heatt99]

Yeah, most retail cards are in that percentile. I have a 760 avg FICO, and my last 3 cards came in at 29.99%. I thought it was my profile, but now I see they are trying any and everybody.

[EAT_SLEEP_JEEP]

Yikes! Its definitely a trend. So  glad we don't carry balances anymore. 

[Dilbert934]

No regulatory restrictions on credit card interest rates.

I don't carry any balances so it's not a big deal to me.  My lowest in Discover at 16.99%

[longtimelurker]

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@gdale6 wrote:

Yes its insane, looked at the Exxon/Mobil card yesterday and saw they too want 34% interest. Time for some serious complaints to the CFPB, it may be legal but its morally grand usury.

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What would a complaint achieve, as it IS legal!

One question for all: indefinite penalty rate.    I thought part of the law was that this has to be reviewed regulalry and revert after a period of no penalty-like behavior (e.g, no lates).   Or did I imagine that!