Credit Cards: What is the universal default clause?

Credit Cards: What is the universal default clause

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Most people who carry credit cards are well aware that interest rates are associated with them tend to be higher than other types of loans like home or auto loans. Anyone with credit card bills paid late more than once or twice is also aware that this is the interest rate on the card can sometimes cause a lot. There are many credit cards interest rates until 20% or 25% per year, and customers who want to avoid,To make interest rates in this area for paying bills on time.

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Many people do not know, however, that up to one third of all credit card companies now have a so-called "universal default" clause in their books. This information, which often means publishing the letter in his name that read, few people take the trouble to which the interest rate on your credit card if you can pay your bills late to other lenders to increase, even if you payRely on your credit card on time.

This means that the delay would be paying the bill, which will appear on your credit report, such as a car payment or your credit card bill could mean an increase in interest rates. This in turn could affect your credit rating. Currently, there is no federal law that prohibits this practice, the law only requires that the lender put in writing openly. Credit card companies say to justify that customersDelays in payment of a person that increase the risk for all creditors. But many, if not most, are the credit cards of customers do not realize that there is such a policy.

Not all credit card companies have a policy, in fact, most do not. Customers are not interested in higher interest rate attached to your credit card for their ability to pay your phone bill at the time you should read the fine print on your credit card. If policies exist,You can purchase claims with your credit card for this or any other card. The lesson is beautiful if you've received your credit card statement or a notice of change of credit card billing, a moment to read the fine print.

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