Credit Card Interest rate hiked again

ICICI one of the worst banks to bank with, has hiked interest rates on Credit Cards yet again. We had last reported about the hike jointly announced by ICICI and ABN in August-2007The rates have now gone up from 3.15% per month to 3.40% per month i.e a whopping 49.36% per annum. ICICI Bank has 9 Million credit card holders.

What does such abnormal Credit Card Interest Rates in India mean ?
Higher Credit Card APR rates means, TROUBLE AHEAD. Stupid Credit Card companies argument for higher rates is rising list of DEFAULTERS. The rate of defaulters has doubled from 5-6% to almost 12-14%.

SBI admitted that it had accumulated loses of Rs 150 crore from its Credit Card division and has double digit NPAs as well. With rising Inflation and economy colling down, we see rainy days ahead and strongly recommend our readers to keep themselves away from Credit Card purchases unless it is an emergency or if they can pay off the bill in full every month.

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