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Is that a US thing? I have several credit cards, yet the interest rates tend to "only" be around 10-13% on them (not that I use the actual credit part -- I pay
by charlesdm 11y ago
Is that a US thing? I have several credit cards, yet the interest rates tend to "only" be around 10-13% on them (not that I use the actual credit part -- I pay them off each month).
- GFischer 11y agoYou think that's bad? Interest rates on credit cards here in Uruguay are insane if you don't pay them in full, from 42% to 99%. Inflation is about 10%, so they're ridiculously profitable. Of course, like a good 3rd world country, we have massive defaults about once a decade, so that wipes out most of the profits for the CC companies. A startup called TuTasa is trying to build a South American LendingClub, but I don't think they're taking off yet: http://tutasa.com.uy/ http://tutasa.com.uy/ One big difference is there's usually only one credit agency (it's Equifax here in Uruguay), and there's a lot more fraud going on than in the USA. http://www.eltelegrafo.com/index.php?id=102900&seccion=locales&fechaedicion=2015-08-16 http://www.eltelegrafo.com/index.php?id=102900&seccion=local...
- Fomite 10y agoNote the "default risk" part of that. I had a credit card that was at a very reasonable interest rate, then due to a series of unfortunate events, I missed a payment. The interest rate immediately shot up to >25%, and I was told it wouldn't come down for more than a year.