Interest rates

[amdy2206]

With the interest rates low at the moment why do Visa and Mastercard insist on still charging 20%. I know it is convenient to use them, and I do on occasions, but really 20% is ridiculous in the current financial climate. People will say ' If you have one it's up to you' but surely the banks must realise it's time to be sensible despite the money they are raking in. Anyone have an address (government or otherwise)that could be used to complain. (General not the banks). Thanks for listening to this moan.

[rocketboybkk]

If you don't like their rates don't use them

The answer is simple, they charge that amount because they can

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[The Dancer]

I suspect it has to do with their business model. They like to make their money off the 2% or whatever it is that they charge the merchant. But to make that income they need you to pay up first. Which would explain the punitive interest rates. They aren't in the business to make personal loans.

Credit cards debts are a slippery slope. Not only are they expensive they could screw up your credit history if you are habitually late. I would get a personal loan from a bank to pay them off.

And they aren't doing anything illegal so you can't complain to the authorities. It's not extortion without coercion. Like rocketboy says don't like em, don't use em.

Edited May 11, 2016 by The Dancer

[KittenKong]

If Visa and MC charge 20% interest, maybe it's because they expect 20% of Thai personal debt to go bad and so are just covering themselves?

Though personally I would put the amount of potentially bad Thai personal debt nearer 50%.

[puck2]

If you would like to (successfully) complain about the charged interests you should know if they are capped in your country by law.

Concerning the Visa- and Master-Cards, there are so many details to consider.

In Germany Master- and Visa-Cards are issued by the banks. The interest terms are defined by your card contract. The X-bank card doesn't have the same conditions as the Y-bank card. X-bank interests are different from Y-bank interests, in general.

In Germany the banks are not allowed to charge more than 12% since (July ?) last year.

So, if you want to complain about the high interst rate you should google if the bank in your countrty is allowed to charge such a high interest. If not, you will also find an address where to complain.

Complain to yourself if you made a contract with these interest conditions.

Edited May 12, 2016 by puck2

[jadee]

Credit cards only charge interest on your balance if you don't pay it off in full at the end of each month. If you clear the balance, you pay no interest so you are essentially borrowing money to buy goods and services for free for up to a month. Plus you can earn many benefits such as air miles, points or even discounts. Credit cards are great as long as you clear the balance every month.

[stevenl]

If Visa and MC charge 20% interest, maybe it's because they expect 20% of Thai personal debt to go bad and so are just covering themselves?

Though personally I would put the amount of potentially bad Thai personal debt nearer 50%.

Is the OP talking about a Thai credit card?