1. Credit card companies can change almost all of the terms of the credit card by giving just 15 days notice.
We get used to credit card companies adjusting their lending rate by 1/4% as interest rates go up and down but did you know they can alter any of the terms for any reason. For instance they can increase the late payment fee and they can increase the interest rate without the need to warrant it. If you are late or miss only one payment the low rate you’re currently being imposed can double or even treble almost overnight.
2. Credit card companies can improve the cost of a purchase months after you purchased it.
In the event you bought a widescreen plasma Tv 3 months ago, using a card which at the time was costing 9.9% apr, and you’re late with just 1 payment, the credit card company can charge you a late payment fee, say $40, and increase the interest rate to 29.9% apr, or even more, and there’s nothing you can do about it.
They can, in effect, increase the price of your Tv months, or perhaps even years after you bought it. The Tv retailer wouldn’t be allowed to complete this but your credit card company can.
3. Discount provides are only good in the event you keep up all of your payments.
Interest free balance transfers and initial periods can dissapear for any minor omission. Failure to keep to all the terms of a card will lead to special terms being withdrawn and possible penalty interest being applied. When you have interest free purchases and balance transfers make sure you keep up the paymentsF
4. It is not just your card payments you have to keep up.
If you miss a payment on your mortgage, or your car or any other financial payment, your credit card companies can re-assess your credit score and increase your interest rate accordingly.
If you therefore miss a loan payment on your boat or automobile, but still pay the payments due on your cards, you can discover that your credit card interest charges jump to two or three times the original rate.
5. Credit card companies are today making record income from you.
If you do not pay your cards in full each month credit card companies make the majority of their profits from you along with a considerable portion of that is in the extra charges they levy.
It makes little or no sense to keep cash in the bank earning 5% maximum and pay 29.9% or 19.9% or even 9.9% on your cards. Pay off the card and use the card for emergencies instead of the savings. Without the card payments you will be able to rapidly replace the savings.
With out your knowing credit card companies can hold you hostage at the very time you might really need financial help. Don’t allow credit card companies the continuing chance to make record profits at your expense, and at the same time the opportunity to benefit from any bad luck.
If you can pay the balance off withing 3 to six months do so otherwise consider some type of consolidation loan to remove the noose credit card companies have around your neck.