From the dirty-tricks dept of credit card companies
These are hard times for all of us, there is a global resource crunch and the thinning ozone layers are not helping matters either. So, what does one do? Well, at least the credit card companies have found a way out and that is to charge high interest rates on its unsuspecting customers whenever and wherever it can.
Basically, credit card companies are now always on the lookout to increase credit card rates at the slightest pretext; for example if you hold more than one credit card and you’re approaching the limit on one card, it makes you fair game for an interest hike in the other cards.
You can actually take a knock of as much as $40 if you are so much as a day late in paying your credit card dues. What’s more many credit card companies are now shortening their turnaround times and you do not have as long to pay as you once did.
Be careful when shifting to a low-interest card. Teaser introductory rates are tempting but you need to keep an eye open for the transfer rates. Also, it is no longer easy to toss a credit card aside once the introductory period is over, you may invite a stiff penalty if you try to do so. So do ensure that you read the fine print and check the rate you will pay at the end of the introductory offer.
Credit cards are also becoming more selective on what their low rates can be used. Check if such conditional low rates are worthwhile for you. Try to go for a low-rate card that gives you an introductory period of at least six months.
Credit card companies would like to talk to you if you’re a high school fresher for whom budgeting is meant to be done by the finance ministry. Also, if you have just emerged from a bankruptcy you are a candidate for a visit or phone call from credit card marketing companies. Conversely, if you pay off your credit card dues unfailingly every month, you’re not going to endear yourself to the card companies and they may make their displeasure known by slapping an annual fee even if you had signed you for a no annual-fee card. Similarly, conscientious credit card holders do not get to enjoy grace periods for purchases made on credit cards. Your card will start accruing interest from the very first day of your purchase.
Don’t let credit card companies entice you into taking a cash advance because when you do, they are not above lowering your credit… just like that! You will be left facing fines for being above your credit limit.
You can be charged by credit card companies in a number of creative ways; for example you can be charged for account inactivity, transaction fees while taking a “free†cash advance, transaction fees when calling a toll-free number to check your accounts, etc.
These are some of the low-down tricks that credit card companies are not above using. It’s up to you to be alert and not get suckered into a credit card deal that is as hollow as a scooped pumpkin.
