I want to delve into how some major credit cards are raising their annual percentage rates to record high levels. Some credit cards are more expensive than ever.how Synchrony Bank, which handles the JCPenney credit card, announced in a recent letter to our household that the interest rate for purchases is climbing to 34.99%. A late payment fee is $41 and, while they are hitting you there if you have two late payments within one year your interest rate will jump to 39.99%.
It continues: “Large credit card companies’ marketing tactics can only make it harder for smaller companies to get noticed. They also complicate the factors consumers consider, obscuring important features like interest rates and fees.” A smart consumer should check their updated APR before using a card. When shopping, remember to take the price tag and then tack on another 20 or 30% in interest for the true price.If you’re saying you like to use a certain card because you get reward points, hear this warning from the CFPB: “Redeeming those rewards may itself be a complicated and confusing process with restrictions, expiration dates and varying point values depending on how they are redeemed.