Credit Card - Some More Tricks to Protect Your Money!
A Credit Article Contributed by Nithya K
Credit Cards - What You Should Remember?
Many times credit card companies forgive a late payment, but they still punish you by raising your credit card interest rate. Say, you fall for the slick marketing hype of the ever-changing-mailing-address trick. You call and scream till they reverse the late credit card payment fee. But again next month when your credit card bill arrives, you notice that you are being charged a higher interest rate as you made a late credit card payment once.
The credit card company may use your late auto loan payment to justify a credit card rate increase. They frequently check your credit report and look for any late payments to justify raising your credit card rates. A fixed rate means that the credit card company has to give you 15 days notice before raising your credit card rate. But you can call and ask them to lower it, but they don't have to do it.
Credit Card - Rates and More Reasons to Be Careful
The credit card companies never need a reason to raise the rates - this clause is there in the agreement. If they won't give you a lower rate, get a new credit card and cancel the old one. Be wary of free gifts that are very costly and might sap your money. Please do trash the offers that come along with your credit card statements. Nothing is free in this world!
Credit Card Insurance - a Hype?
You really don't need a credit card theft insurance. If your credit card gets stolen, you just need to pay $50, that's all. Credit card disability insurance would make the debt worse, if it ever kicks in. Credit card disability insurance is a very bad idea anyway. Even though you don't need to make payments, the debt piles up and chokes you. And the worst part is that you can't use your credit card during that period.
If you are planning to pay the minimum, it will take an eternity to pay the whole amount. Most credit card companies set the minimum payment at 2 percent of the debt. At this rate, one would end up paying for life. If you have shaky credit, you might fall prey to a really bad credit card deal, like the card with $360 in fees, that leaves you with only a $19 credit limit.
You would have to be very careful, otherwise you would get socked with unexpected fees and soaring rates when you do a balance transfer. Be cautious, and ask if there is a fee before doing it. Also, ask how long the low rates would last. the low rates on credit cards offers are usually only good for six months. If you are not careful, and make a late payment, you might end up with the highest rate! Also, be aware of the zero-percent offer that may sound too lucrative to be true. But you will end up in a soup if you make a late payment or if the introductory period ends.
