The arbitrariness of the credit card world is highlighted in a recent Consumer Action study of reasons a credit card issuer can raise the interest rate on your card. Adjacent to “too much debt” as a reason for a rate increase was “too much credit available”! So if you’re a good credit risk in the eyes of other credit grantors, you deserve to pay more on your existing balance? The mere inquiry about a car loan or a mortgage loan will cause 24% of banks to raise the interest rate.
More support for my contention that the consumer is a pawn in the world of credit cards and the safest place is on the sidelines of this madness.
Cathy Moran
