Credit Cards that suck!

I have started this blog with the mission to expose some of the horrible credit card experiences of many Americans like myself. It is dedicated to the banks that are profiting through "fine print" predatory policies which permit legal loan sharking and which seem to operate under the blessing of laws written by them.

Consumer debt has been for ages the drive behind our economy and it has been always thought as the American way! The prime example is the American Government which has borrowed trillions to finance a war in Iraq, budget shortfalls, and federal mismanagement. Americans are often encouraged to help the economy by spending even when it is known that most of the spending at the middle and lower classes is financed by credit cards and consumer loans since salaries have been slow in adjusting to the increase in cost of living. That is demonstrated by the rising consumer debt which now stands at approximately 2.5 trillion US dollars. Low interest rates in the early 2000's motivated several people with good credit history to accumulate debt at the encouragement of the Federal Reserve and the banks who bombarded responsible consumers with attractive borrowing rates and exceptional offers. Now interest rates are going up and these same banks are using predatory techniques to often raise rates to 29.9% and above using as an excuse "excessive borrowing" or some other "fine print" in agreement ammendements that are sent as often as once a month.

My experience starts with a Bank One card with an 8% interest rate and a situation where I decided to take advantage of my responsible and exceptional credit history. Family health problems were calling for some unforseen expenses that led me to ignore a rising balance on my card although I was making 4-5 times the minimum payment. The low interest rate kept me from taking an equity loan which would have been on a fixed rate and for a while everything seemed fine and I was on my way of paying off my balance. That is until Chase Bank bought Bank One and agreement amendments started to arrive at a rate of one a month. As many I did not pay close attention to the amendments simply because there is good faith to ethical and fair business practices. Obviously that is not the case with Chase which suddenly started raising rates at 8-10% interest increments until my interest rate was adjusted to 29.9%. To my dismay the bank refused to consider any review because according to them I was now a credit risk and had excessive debt! The interactions with them had been quite an experience but I do not want to repeat the hundreds of similar stories I discovered on the internet. My question which remains up until today ( I have paid off the balance and I am Chase free) is the rational of a loan shark rate when somebody suddenly is a credit risk. Isn't a higher interest rate almost guaranteeing default?

In my quest for an answer to my question I discovered hundreds of similar stories and some interesting facts. I would like to use this blog to share these facts, and offer tips and advice whenever I can. Furthermore I would like to accumulate your views and opinions about "Credit Cards that Suck"!

Thank you for visiting.

George