Pro Tip: Don’t apply for a credit card that excludes residents of Iowa

Because of how strong the laws are in Iowa, customers there aren’t as profitable for card issuers. Most just take this on the chin but some (like Barclay) have decided to bar residents in protest. Here are some of the main reasons why they may have chosen not to do business with Iowa residents:

  • Delinquent payment fees are capped at $15 (Arrival has a late payment fee of $35 and it causes you to default to a penalty APR rate of ~10% above your regular APR)
  • Card issuers have a period of only five years to proceed with legal action against people who have become delinquent (usually six years in other states)
  • Interest rates are capped at 12% for consumer transactions (although this doesn’t apply to credit cards, so isn’t a real reason as to why Barclay wouldn’t allow Iowa residents to apply)

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