Real Estate Community Forum

I was wondering why some people have lower interest rates while others have higher rates? I have two credit cards with two separate interest rates. One has an interest rate of 11% and the other has an interest rate of 17.99%. I am very responsible with my credit cards and make my payments when they are due, so why is there a difference? Do credit card companies monitor your spending and raise the interest rate as your debt increases?

One of the ways I lowered my interest rates was calling up the credit card company and threatening to close my account with them. Immediately they start negotiating with you because they don't want to loose your business. Chances are they will offer a lower interest rate and any other features such as zero percent interest on new purchases for one year. I try to stay away from the zero percent interest rate teaser. This is only beneficial if you pay off your balance in one year to avoid the extra interest.

One of the major problems with credit cards is they can increase your interet rate with out notifying you. So you can be paying 12% interest rate one month and jump to 22% the next month with no notice at all, which is why people hate credit card companies.

It is possible that you may have a different interst rate on your two credit cards because you were late with a payment in the past. This has happened to a friend of mine who went out of town and mailed her credit card payments too late. As a result, her interest rate was increased. She was very upset, but credit card companies have the authority to so this, which is why I am determined to pay off all my credit cards as soon as possible!