I have a Macy's card (store not VISA) and I frequently save 15% on my purchases just for using the card on top of any coupons I have and I also get 2% back from the card on all my purchases. That makes Macy's worth my purchases, especially on things that otherwise would or can not be discounted.

He bought a private label INC coat from Macy's, he deserves the high ass interest rates, and ass raping good times. Boycott Macy's fieldsfanschicago.org

This could produce some amusing results. Buy nothing in a month except for a candy bar on the last day.

Average Daily Balance= 1.00/30 = .03333
Finance Charge= 2.00

2.00/.03333 = 6,000% monthly interest rate

6,000% * 12 = 72,000% Annual rate.

Heh. I think I may do just that. It would be worth the $2 just for the laugh.

I knew it was something relating to having one small purchase and not something totally absurd.

Personally, I like the Macy's card -- I get 20-25% off when I use it and pay it off right away. After doing that a few times, they offered me free gift wrap... no stress!

You keep the $27 bucks.

2.00/3.35 = 59.7% Monthly interest

59.7% * 12 = 716.4% Annual interest

Yes, it's stupid and makes for a fun story on a Sunday, but when you have such a low balance and the minimum finance charge is a dollar amount rather than a percentage, you can get insane APRs.

Some outside company is getting most of that intrest.

The $2 would apply each month, but since the charge was on April 15th, and the statement closed on April 15th, the system is calculating the annualized rate based on 1 day. I'm not sure HOW, as I come up with 1065% rather than 716%

$2 / $103.70 = 1.9286% for that ONE DAY. Annualize that over 365 days is 1065%. I think that Macy's must be including the $5 minimum payment payment into their calculation to lower it to 716%. I would imagine that the NEXT months statement (if not paid in full) would show a more accurate number.

Funny this is posted as I was planning to send my Macy's statement in too. I have a Macy's account I use ONLY when they are throwing me a big discount to use it (rare). I also pay the bill in full the moment it arrives.

That said, I noticed when I just got my statement a similar 700% rate and a week prior got a long legal notice from Macy's about how they were raising interest rates on my account, WAY up. Since I always pay it off, I just shook my head.

Yes, Macy's has been up to sneaky stuff with their credit cards lately. I suspect since sales are down in their stores they are trying to screw their credit card customers to make some extra cash.

@wcnghj: Right-it would only apply each month, but since they're partway through a billing cycle, their computer seems to think it will hit more frequently-say, every two weeks or week or whatever.

Error:

You chose to make minimum payments only. The amount of your payments is not enough to ever pay off your credit card debts. Please adjust your entries.

That $5 minimum scares me, hopefully the OP pays in full.

The normal finance charge, as you can see on the upper-right-hand corner, is 23.99%