6 Credit Card Secrets Banks Don’t Tell You
Filed Under (Credit Cards) by admin on 14-07-2010
Tagged Under : bank secrets, credit card trap, Credit Cards
1. Interest Backdating
Most card issuers charge interest from the day a charge is posted to your account if you don’t pay in total monthly. But, some charge interest from the date of purchase, days before they have even paid the store on your behalf!
REMEDY: Find another card issuer, or always pay your bill in whole by the
due date.
2. Two-Cycle Billing
Issuers which use this way of calculating interest, charge two months worth of interest for the first month you failed to pay off your entire balance in full. This drawback commences only when you switch from paying in full to carrying a
balance from month to month.
REMEDY: Switch issuers or always pay your balance in total.
3. The recommendable To Setoff
If you have money on deposit at a bank, and also have your credit card there, you possibly could have signed an agreement when you opened the deposit account which permits the bank to take those funds if you become delinquent on your credit card.
REMEDY: Bank at separate institutions, or avoid delinquencies.
4. Fees Are Negotiable
You possibly could be paying up to $50 a year or more as an annual fee on your credit card. You possibly could also be subject to finance charges of over 18%.
REMEDY: If you are a proper customer, the bank possibly could be willing to drop the
annual fee, and reduce the interest rate ‹ you only have to ask! Otherwise, you
can switch issuers to a lower- priced card.
5. Interest Rate Hikes Are Retroactive
If you sign up for a credit card with a low "teaser" rate, such as 7.9%, when the low rate period expires, your existing balance will likely be subject to the regular and substantially higher interest rate.
REMEDY: Pay in entire before the rate rebuild or close the account.
6. Shortened Due Dates
Most card issuers offer a 25 day grace period in which to pay for new purchases without incurring finance charges. Some banks have shortened the grace period to 20 days‹but only for customers who pay in whole monthly.
REMEDY: Ask to go back to 25 days.
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