You would think that with the state of our economy and  all that bailout money the banks would be somewhat lenient towards our interest rates and penalty fees. But sadly this is not the case. Credit Card consumers who do not even default on there credit card payments are complaining that even though they continue to keep a good credit score and pay off there Credit card bills every month there interest rates are still going up as high as 27%. Banks are finding new ways to maximize profits by increasing penalty fees and raising interest rates. But there is a catch - Although banks do like credit card consumers who do pay off there debt in a timely manner they also know that  issuing credit lines to people who cant pay them back is also profitable. GET THIS: Between '03 – 07 the top seven banks that issue credit cards packaged all there debt into securities and sold it to investors. This is not good for the consumer. This is giving the banks a reason to raise rates so that most people do default and they can just cash out by selling the debt to investors. They pass along some of the risk to these investors and at the same time keep the profits from the accounts with raised fees and interest. Banks claim they use a special software to compute what they charge regarding fees and penalties BUT yet At the end of this year 09' banks will have written off about 10% (90+Billion) of credit card debt which is the highest write off ever. Why do you think they are writing off this debt?? Maybe because its being sold? The facts show that banks are lending too much credit too fast.

This is exactly what they did with the bad mortgages and look at the economy now. First it was the mortgages and next will be credit cards.  So people please be aware of banks offering you credit cards before you even apply. I don't think you would want to deal with companies who want you to be in debt.  I will leave you with this thought:

" Credit card  consumers with a lower income  who keep a balance on an account  can be more profitable for banks than other borrowers."

Bad-credit-ok.com