Lowe's CC 32% interest!

[disneysteve]

I got a Lowe's credit card a few years ago to save 10% on our new refrigerator. The card also gives 5% off at the store all the time which is nice. Of course, I pay the balance in full every time. The other day, I got their periodic notice that they send whenever any terms change and couldn't help but notice that the interest rate on the card is 31.99%. I've got an 820 credit score (it was 850 until we paid off the mortgage). If they're charging people like me 32%, what are they doing to people with lesser credit, or is that the same rate for everyone?

I never pay attention to the rates on our cards because we never carry a balance, but I just figured in was more in the 19% range, which is still nuts, but 32% is way beyond insane.

[bjl584]

I just opened a Lowe's card this past weekend to take advantage of the savings on the initial purchase.
Yes, 31% interest for me with near perfect credit.
Like you, I don't care, as I will be paying it off in full when the bill is due.

There is no federal law that dictates how high interest rates can be, but there are laws capping them in certain states.
I found this:
What are Usury Laws and Maximum Interest Rates? | Bankrate

I couldn't find much on Pennsylvania, but I only did a quick search.

[disneysteve]

There is no federal law that dictates how high interest rates can be, but there are laws capping them in certain states.

Yep, that's why so many cards are based in Delaware.

[ua_guy]

Imagine the people who have to buy appliances on credit like that because they can't afford to pay cash. Ouch. Now is not a good time to be borrowing money.

My regular credit card with the cash back incentives is high 20% I think. I've never carried a balance on it, but receive the notices as the rate continues to go up.

[disneysteve]

Imagine the people who have to buy appliances on credit like that because they can't afford to pay cash. Ouch.

Nobody is forcing them to buy brand new appliances from Lowe's. When we bought our house years ago and didn't have much money, we got some used appliances and a couple from the Sears Outlet where they sold returns and scratch and dent stuff for a fraction of the original price. Heck I see people giving away perfectly good appliances online everyday for free. There's no reason to pay top dollar at a retail store like Lowe's if money is tight.

[myrdale]

Hence my post:

https://www.savingadvice.com/forums/forum/financial-chit-chat/general-discussion/745634-playing-with-snakes-got-bit

I've got to go back and see if it was HD or Lowes. Either way it sucked to miss a single bill.

[LivingAlmostLarge]

I couldn't tell you either. I'm surprised though more that people with CC debt couldn't tell you what they owed and what the interest rate was. A weird thing was a couple who couldn't afford their tax bill this year, and were trying to figure out what CC to put it on and how much used the husband's $1000 bonus to buy a leather jacket instead. Also they drove a BMW which even if it was older is not a cheap beater.

[james.hendrickson]

For all the lurkers on the forums, here is a really good documentary on the history of the credit card. Its a bit date, but it gives a pretty good overview which touches on the issue of different states regulating credit card interest rates differently. It was initially aired in 2004, but it got something like 6.4 million youtube views and 6,000 comments, so its still relevant.

https://youtu.be/2mHsTKvAuZc?si=bNL9fQZiMaK93g01

Here is a screenshot of the video.

[disneysteve]

Just in case 32% interest isn't bad enough, I got an email today informing me that starting next month there will be a $1.99 monthly fee to continue to receive paper statements. I logged in and switched to paperless even though I'm not a fan of them for bills. It will only cost a couple of cents to print out the statement myself each month. I feel bad for folks who aren't as tech savvy.

[Jluke]

What’s your reason to print the statement?

if anything just download to your computer and save there.

I do neither so curious if I’m missing something

[disneysteve]

What’s your reason to print the statement?

if anything just download to your computer and save there.

I do neither so curious if I’m missing something

Do I truly need them? No. I would just need to change up how I pay bills. I always sit down at my desk and pay the bills that need paying from the stack sitting in front of me. My fear is that an e-bill will quickly get buried in my in box because I get so many emails every day. If I don't pay it right away, I could easily see myself forgetting that a bill came. That doesn't happen with a paper bill staring me in the face in the middle of my desk.

It would also mean changing how I do tax preparation at the beginning of the year. Throughout the year, I highlight tax-related transactions on my statements. In January, I sit down and compile a list of all of those to use for tax prep. Personally I find that a lot easier than having to scroll through everything on my computer screen (where I can't highlight anything).