Do credit card companies feel guilty about 20% interest? Should they?

Credit card companies are just that, companies. Companies don't have feelings. The emergence of corporations allow people to eliminate any emotional connection with their actions - it's all about the stock holders.

The CEO's and senior execs don't feel guilty about 20% interest or 29% default interest, $29 late fees or over the limit fees. They also don't feel guilty about slipping in charges for insurances and other features that require you to take action to cancel. They rather enjoy the millions of dollars they earn from people who choose to use their money and pay 20% interest.

If you use credit intelligently (use cards with 0% transfer balances and pay off before the increase goes into effect, apply for cards that offer much lower interest rates and then keep them low by staying within your credit limit and paying your bill on time, there is no need to get caught in a trap of 20% interest.

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No.

That 20% takes into account the huge risk they are taking. When you make a credit card purchase, the company has to pay whatever vendor you went to, regardless of whether or not the person using the card pays the credit card company. The 20% is also a strong incentive to make people pay their bills on time, to lower this risk (all companies want steady, predictable cash inflows). If the rate was lower, say 5%, fewer people would pay their bills on time, and for their investment (giving you the credit) the credit card company could probably get a higher return investing their money elsewhere.

That's how they make money; they charge heavy interest rate.

They don't feel guilty at all; even if it's a single mother with many children. Someone needs to step up and give those credit card companies a good kick on the buttocks. lol

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Credit card companies have to make money. They charge interest and fees to card holders, and they charge fees to merchants.

If used correctly by cardholders, credit card companies will make very little money off of them. Here's how I use my cards to my advantage:

Transfer high interest balances to 0% interest balance transfer cards. This is usually for a fee and 1 year. Pay that off in a year and don't use the card for anything else.

Apply for a card that is 0% interest (again, usually for a year). Make the large purchases and pay it off.

Pay off all balances monthly. If you have (or would like) a rewards card, see if your debit card offers rewards.

Speaking as a nationally known lending and credit expert (book, radio shows, newspaper column, etc.)...

A corporate entity has no remorse. It is unfeeling. It has policies. It desires maximum profit. If it trades stock, it has an obligation to make the most money for its stock holders.

If they could, the default rate would be set at 50%, but state laws don't allow that. And they would not feel guilty about that either.

They should feel guilty. In my opinion, they are full aware of peoples capacity of overspending and take advantage of it. They especially pray on the young that have yet to learn how to spend responsibily.

Companies should act with responsibility towards society and not just be in business for the sake of making money. Its a road that leads to greed and envy and eventually corruption.

Some of the largest corporations today are corrupt. If you remember the recent "accounting errors" reported were not accidental. Senior executives got indicted and convicted of some serious crimes.

right this is the problem. The bankers very own the government. extremely actually. occurred on Dec. 23, 1913 while a gaggle of treasonous Congressmen surpassed the Federal Reserve Act. considering the fact that then those inner maximum bankers have stolen all our gold and silver and given us their valueless paper forex. severe expenses of activity is in basic terms yet differently to squeeze extra out persons. the government will do no longer something to help us using fact there is not any incentive for it. government is a company!

They will charge you 20% interest on the amount of money you borrowed from them when you do not pay on time. Here is the best thing to do: Pay your your credit card bill on time and you won't be charged interest! I do it all the time!

Why should they feel guilty?? That 20% is how they make their money.

yes that's how they make their money

there are a lot of banks that charge a lot less than 20 % so you actually have a choice