Credit card companies can charge you any rate they want - no limit;  24%, 36%, 48%, 60%, 101% - no limit.

Not only that, they don’t have to have a reason to raise your rate. The article below illustrates that banks are raising rates on credit card holders to offset losses incurred in loans to others that should never have been granted. So, your neighbor lied about income and got a variable rate mortgage. When the rate adjusted upward and your neighbor couldn’t make the payments the property was abondoned, and the bank incurred losses. Now the bank is going to raise your credit card rate to cover its own mistake.

Read this article and take it as a cautionary tale. You need to adopt a money management plan that lets YouBeTheBank. It isn’t all that hard and - like Carson Moore in the article - age is not a reason to step back from this strategy. If you’re healthy and in your 60’s you will likely live into your 90’s. Start today - visit www.TheMoneyForLifeBook.com

Facing losses on bad loans, banks boost credit card rates

Moore, of Elkton, Ky., says he always pays more than the minimum due on his credit cards, and does it on time, every time. But in January, Bank of America told him it was nearly tripling his interest rate, to 22%.

“I don’t know why they did it, but I’m not very happy about it,” says Moore, 60. “It’s not like I miss payments or anything.”

Bank of America (BAC) says it’s raising rates on some card accounts based on “periodic” reviews of consumers’ risk. The change, it says, isn’t directly linked to delinquencies on mortgages and other consumer loans. But as banks’ losses mount, they’re jacking up fees and rates and tightening rules on all sorts of consumer loans — from credit cards to auto loans — to cushion their losses, some analysts say.

 Read the entire article here.–>http://usatoday.printthis.clickability.com/pt/cpt?action=cpt&title=Facing+losses+on+bad+loans%2C+banks+boost+credit+card+rates+-+USATODAY.com&expire=&urlID=26403602&fb=Y&url=http%3A%2F%2Fwww.usatoday.com%2Fmoney%2Fperfi%2Fbasics%2F2008-02-06-consumer-credit-charges_N.htm%3Fcsp%3DManagingMoney&partnerID=1661

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