Is there a legal limit for how high a credit card company can raise their annual percentage rate?

There is no Federal restriction on the maximum interest rate that a credit card company can charge their customers. On top of that, most of the state-based usury laws really only apply to bank loans, so those don’t apply either. Generally speaking it seems that most rates seem to top out at 29%.

While there is technically no limit, it does reach a point where people will have no ability to repay if the rate gets too high. Personally, I would think that rates should be based against something like the Federal Reserve Overnight Rate or the Prime Rate – that way the margins of a credit card company are not eliminated in a high interest rate environment. Along those lines, I think something like Prime + 15% or around there seems more than adequate for a company to make money even on high risk customers.

If a credit card company feels like even that much interest isn’t worth it, I think they should just not be offering the credit in the first place.

The issue of legal limit on annual percentage rate on credit card debt can be traced way back in 1978, when credit card companies won a favorable ruling from the Supreme Court, that allows them to send the expensive stipulation on their terms and conditions into areas that bans said clauses. In effect, credit card companies relocated to states that tend to favor them and does not have any restrictions or limit on APR. Among the states that have shown leniency towards usurious lending lending rates are South Dakota and Delaware.In my opinion, recent legislation that has been passed is sorely lacking in the sense that it only delves on credit card fees and not on imposing a cap on interest rates.

In the current scenario, "it's so important to make timely payments, even if it is just the required minimum payment. Besides avoiding late charges, you keep your payment history intact and avoid giving your credit card company an excuse to raise your interest rate.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.