Have you came across the following phrases when reading a magazine, browsing the internet or watching TV? “All a girl needs when she goes out shopping”, “Access is more reliable” and “Be spendalicious.” If you have, you probably noticed a credit card besides the above phrases. Basically, the ad was promoting a credit card provider.
Credit card companies use sweet phrases to convince you into selecting their products. The problem is there are many secrets they don’t reveal to customers.
Here are things your credit card provider doesn’t tell you.
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Interest rates are fixed
Fixed interest rates are not really fixed. Credit companies have the authority to raise them whenever they choose. While this may not seem like a blatant secret, the details are hidden among the fine print. Regardless of this, credit card companies are compelled to notify you 15 days before the interest rates are raised. So, next time you receive mail from the credit card company, read it carefully to avoid nasty surprises.
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Extension of penalty rates to all of your credit cards
Did you know that making late payments for a single credit card will result in penalty fees to your other credit cards? Well, this is one of the blatant secrets that credit providers will not tell you. Why? They want to profit. What you need to know is that making a simple mistake like late payment on a single credit card will result in further damage to your credit report. To avoid this, monitor your credit cards.
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Reduced grace periods
In the past, credit card users were able to make purchases interest free. The condition was the amount spent was to be repaid within the 30 day grace period. Credit card providers realized that this was not profitable. As a result, they lowered the number of days to 20. There are others (credit card providers) who have eliminated the grace period completely. This has led to credit card users being charged interest on purchases they make. To avoid this, read the fine print and find out more about the grace period provided.
Final Thoughts
So, which credit card tips should you implement to avoid nasty surprises? Take your time to read the fine print. Ask questions related to grace periods, penalty rates, no card limits and late payments. Furthermore, monitor your credit card accounts daily.
