Budget management

I am confused

I am confused. I thought it was illegal to raise an interest rate this high??? This is highway robbery. I noticed a couple of mine went a little higher as well and it has really pissed me off but I would die if it went to 32%. There has to be a legal issue with this. I would dig deep.

I also start thinking payday loans (from reputable providers like LendUp or KeeLoans) are much better than credit cards. If you are just a user on his CC account then it shouldn’t show up on your credit report. You are only a “user” and not and not a co-signer on the account so I would look into getting that removed from your credit report. I think it will show up because if someone adds another person as an authorized user, it helps the authorized user’s credit score. That is why many parents will add their children as users without actually giving them a card to use because it will help to establish credit history for the child. I will do that for my son to help him establish credit and maybe, just maybe he’ll avoid the trap I fell into…having 4 major credit card my first year of college. Of course, it could backfire and bite me in the butt.

Apparently the federal laws have been changed and if you sign on the dotted line and agree to their terms they can can raise the interest as high as they want… according to their nicely worded contract with you ….nice huh? Includes if they don’t like your other charge card or loan amounts they can raise your interest unbelievable …. read everything before you sign…. Some states have lower usury laws than others. That is why most of your credit cards are based in Delaware and out west, Utah or Colorado, something like that. They have higher limits, like 45% cap or something on what they can charge you in interest.

My daughter has many money issues. She is starting to work on it really hard and doing well at it. She called Capital One to tell them she was having problems making payments but that she was going to start catching up. They told her to keep using the card as it would be good for her credit. Her credit is awful. Her last payment to them was 45 days late. Is it true she can improve her credit if she uses the credit card and pays on time from now on? Would she be better to pay it off and close the account? She is so trusting to some people and what she said the credit card place said just sounded like it would benefit them and not her.

I wonder why having a credit history will help your son avoid that trap. It seems it could encourage it. I say that as a fellow traveler: I had a Visa when I was a sophomore, and started carrying a balance when I graduated and got married and started grad school. Fortunately for me, our income will allow us to clean up our mess relatively quickly, so we can start using our income to get filthy rich. Not everyone will have that luxury, and the best way to fix credit problems is to not start borrowing money.

This is something I struggle with as we raise my son. Trying to find age appropriate ways to show the traps we can put ourselves in with credit is hard. Lesson one is that we (in the USA, anyway) are terrible at sorting needs from wants. Lesson two seems to be: it it not against the law to not use credit cards.