Some Secrets Your Credit Card Company Won't Tell You!
One of the worst menaces that have hit the American consumers today is credit card
. Credit card companies, as we all know, are business enterprises. They aren't here to offer you credit in the name of charity. Profit is their ultimate goal. Widely available credit cards, wrapped in attractive offer and low teaser rates, carefully bait the consumers and coax them into a credit card family. But what lie behind are tricky strategies to extract the most out of you without your knowledge of it. And you are left with huge credit card bills at the end of the month.
Sounds perplexing? Well, here are some tricks that credit card companies apply but won't let you know:
1. INTEREST BACKDATING: If you do not pay in full by the due date, most credit card companies charge will interest from the day the company had paid to the store on your behalf. But, some charge interest from the date of purchase, days before they have even paid the store on your behalf! That is trick to extract more interest from you. To avoid it, try and pay your bill in full by the due date.
2. CONDENSED DUE DATES: Most card issuers offer you a 25 day grace period within which you can pay for new purchases without incurring any finance charges. Some banks condense this grace period to 20 days, but only for customers who pay in full by the due date. To avoid this, you can ask the bank to give you the 25 day grace period.
3. INTEREST CHARGED FROM DAY ONE: On most credit cards, there is no grace period on new purchases, when you carry a balance from month to month. The 20-25 day grace period having no finance charges is inapplicable when you fail to pay in full every month. To avoid it, find cards that do not include new purchases while calculating interest.
4. DELETING GRACE PERIODS: The credit card company may offer you a gold card with a $10,000 credit limit. But beware of the trap. It will come with lots of features may not be as fabulous as the credit limit. The most common catch is that the card will have no grace period. You will be charged interest on everything from the day you buy it, even if you make timely payment. So, decline the offer.
5. INTEREST RATE BOUNCES TO REGULAR: Low "teaser" rates often withdrawn without your knowledge, subjecting your existing balance to the regular and substantially higher interest rate. To prevent a big hole in your pocket, try and pay in full before the rate increase or simply close the account.
6. BAFFLING MONTHLY MINIMUM: You may think it is advantageous to have a card where you only need to pay just the minimum (that is, 2%-3% of your balance) every monthly. But in reality, it is just the other way round. The longer you carry out payments, the more money bank extracts as finance charges from you. To prevent it, you must pay more than the minimum every month.
7. CHARGES ARE NEGOTIABLE: You may be paying annual fee up to $50 per year and finance charges over 18% on your credit card. But do you know that these charges are negotiable? Your credit card company will never want you to know about it, as slashed charges will reap less profit. Nonetheless, if you are a good customer, the bank may be willing to lower or eliminate the annual fee, and reduce the interest rate, on your request!
8. CURTAILED BENEFITS: You often to sign up for a new credit card with extra benefits such as a lifetime warranty, a 5% discount on all travel, or protection if an item purchased is lost. Now, some banks have curtailed these extras without your knowledge. So, it is advisable that you read all notices regarding changes to your account or switch cards if required.
So, the next time you get lured by the tempting introductory offers on a credit card ad, take some time and consider the above possibilities. A little bit of financial wisdom can actually save you from enormous debts and help you enjoy the benefits of credit card. Yet, if you still fall prey to the hidden tricks of the credit card companies, you can consult one of the
credit card debt attorneys in your state and find out your legal options.
Some Secrets Your Credit Card Company Won't Tell You!
By: Bg Johnson
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