Credit Card Entrapment - The Secrets are Out
Have you ever wondered why your credit card bill is so high and you can't seem to pay off the balance? Well you are not alone in this. You should be aware of a couple of trick that they use and you probably don't even pay attention to it, but you definitely pay for it and BIG! The next time you open up your credit card statement, take a real close look to all the "junk" inside particularly the very hard to read insert Call "changes to you credit card agreement". That's right the one you always throw away or say that I'll read it later and never really do.
Since you neglected to read all that fine print you just threw away you should realize what you just did. In essence you just agreed to all the changes the credit card company made IF (and that's a big "IF") you use your credit card again. Most people do and don't even read all "that stuff" in the envelope with their statement. Since these were automatic changes effective immediately or on a specific date that they set in the new terms and conditions. Some of the ones the credit card companies use most often include, but not limited to, changing your APR (annual percentage rates) you thought that 0% would last forever? Changes to your existing fees and/or adding new fees. Let us not forget that they also like to change your grace period, the time that you can pay it off and not receive a finance charge. If you don't know or you don't keep track of your credit limit...stop using it! If not you will get yourself into this next little fix. When ever you do go over the limit (they make sure and give you a little slack so they have an extra fee to charge) they hit you with an "over the limit fee" making you more over the limit and making you pay down your balance even more or you will face yet another over the limit fee the following month. There is nothing like a little $35 or more fees to cheer you up when you have to pay your bills. If you really like higher rates on your credit card then just make sure the payment is late, that is a sure fire way of getting an increase in you APR. Some credit card companies go as far as saying your payment is late if not received by noon or 1 p.m. on the payment due date. Thanks for another $29 or more fees are the likely response from the credit card company.
If you are a procrastinator and wait until the last minute to put money in the bank for your check to the credit card company to clear then you need to be very careful. With all these new high tech devices we have these days they are a lot more efficient at processing their money taking days shorter than they did even 5-10 years ago. For the ultimate procrastinator who will wait until the last minute and pay online. Once again the credit card companies will most likely make you pay for that convince. I have seen anywhere from $1 to $15 just to make your payment online. This one is my favorite one and it took me awhile to figure this one out, because like you I really just didn't pay attention. And man did they make me pay for it too. Some credit card companies offer cash advances. You really have to think to yourself "How good of a deal is it really going to be?" after all they already charge 15%-18% or higher! Why is it such a bad deal? I'm glad you asked. In most cases when you use your credit card to withdraw cash more fee kick in: - A cash advance fee is normally an up front fee any where from 2%-4% of the cash you take out - The cash advance on the credit card ALWAYS has a higher interest rate than your normal purchases - The interest starts as soon as you get the money out of the ATM - Many of the credit card companies also require that you pay off all the balance from your purchase before you can pay off your cash advance. Here's a little example on how they get you with those extra fees: Let's say you regularly charge $200 dollars a month with purchases on your credit card and you keep a running balance on your credit card of $1000. If you went out and needed cash right away and took out a $100 cash advance you would have to pay off the $1000 dollars before you would be able to get to paying off the cash advance. Now let's not forget the $200 you put on every month that you would have to pay off before they would pay off the cash advance. I was going around in circles on this one for years before I figured it out. Free advice don't use a cash advance unless you absolutely have to. Taking the time to read the little "junk" the credit card companies send you in the mail and knowing where all these fees go will save you a lot of money in the long run. Mical Johnson is affiliated with Rock Financial, Inc., a Licensed Correspondent Mortgage Lender, Florida Department of Finance. Mr. Johnson hosts Home Buyer's Seminars which are open to the public each month in the TampaBay area in Florida. To obtain a free copy of Mr. Johnson's Home Buyer Handbook contact him at http://www.TampaMortgageGuy.com. He is also a contributing author at http://www.Debt-Free-Personal-Finance.com
Related News
|
 |
|
|
RELATED ARTICLES
Fair Isaac Corporation Credit or FICO Score
As I am not from the US, I had no idea what FICO meant before researching it. FICO stands for Fair Isaac Corporation, a company based in California. FICO, put simply, is a person's credit score. A credit score can be used by a potential lender in making a judgement on whether to grant you credit or not, for example when you apply for a new credit card or home mortgage. Therefore, if you are in the US, the FICO score is very important to you.
What Does a FICO Score Do?
How to Order the Right Credit Reports to Repair Your Own Credit
In this week's article, I am going to offer some tips and insight regarding how to order the right credit reports needed to repair your credit.
Teaching Students To Keep Out Of Credit Card Debt - The Parents Role
Parents have the full responsibility for their children and their education. It is up to parents to teach their children what's right and what's wrong, how to conduct themselves as good citizens, how to cross the road safely and generally protect themselves from harm. In fact, up until the time that child is an adult, the parents have responsibilities in every part of that child's life, right up until the time they are a college student.
Credit Counseling: Could it Work for Me?
In the face of financial hardship, many seeking a responsible solution turn to credit counseling. Credit counseling is, all too often, the last stop before bankruptcy. That is, of course, not to say that credit counseling prevents bankruptcy altogether. There are more cases than one might think that end up in bankruptcy court after credit counseling has failed to remedy the financial woes of the debtor.
Free Credit Report - Really
2005 marks the year that consumers will be able to get a free credit report each year. The roll out of the Fair and Accurate Credit Transaction Act signed into law by President Bush actually began last December 1. If you didn't know about it, don't worry. You haven't missed the boat. Not everyone is eligible to get their credit report. The Federal Trade Commission (FTC) is allowing the credit bureau's to implement the program piecemeal so as not to overload the new credit report system. Millions of consumers are expected to take advantage of the free reports.
Finding and Applying for the Right Credit Card Offer Online
Anywhere you go online nowadays, you will see a multitude of ads for credit cards. Some offer low interest rate for an introductory period, or bonus frequent flyer miles while others offer real discounts on new vehicles and equipment. Trying to find one that suits your needs and lifestyle can be a little overwhelming.
Learn How to Improve Your Credit Score
Having a damaging credit record can hurt you in many ways. It may prohibit you from making an important purchase such as a home, car, computer or vacation. Without a healthy credit report you are severely limiting yourself from possible lenders. If you do find a lender you will undoubtedly be charge exorbitant interest rates far exceeding what recipients would receive if their credit history is in good standing. So how can you fix your credit score if you've been less than diligent with repayments to creditors? Well contrary to what many advertising scams will tell you, you can't fix your credit overnight. In most instances it takes 7 years for a payment infraction to be deleted from your credit report. If you were to file bankruptcy it would take 10 years. Obviously fixing the problem before taking such drastic measures is desired. Bankruptcy must be used only as a last case scenario and the implications must be fully understood before proceeding with such severe measure. Besides bankruptcy staying on your credit history for 10 years and posing large problems if you decide to seek out a financial lender, it can also impact other areas of your life. For instance you may be rejected from certain jobs, prohibited from taking on certain responsibilities and positions within your own company if you are a business owner and you will still be in the bad books of the people who you may require to lend you money.
UPS Delivers the Goods, Your Identity
Well now we add CitiGroup and UPS to the Identity Theft corporations who have allowed Americans identity to be lost. Each time we have another identity theft case, we find larger and large numbers being lost. We have hear of some of them; Petco, choice Point, LexisNexis and the Citigroup, where a UPS van was broken into and a tape was stolen with 3.9 million US customers personal financial data and identity information?
The Things That UK Lenders Like to See on Your Credit File, (and? What They Don?t Like to See!)
Lenders are quite fussy about what they like to see on your credit report. So much so that you will have a hard time to meet their high expectations. But what exactly are they looking for? In this article we take a look at one aspect of your credit history that lenders have a keen eye out for.
10 Ways of Reducing the Risk of Identity Theft
1- Check your credit report regularly
Understanding Credit Card Penalties
Because most of us have one or two credit cards and we use them every day, understanding credit card penalties and fees is a significant issue since one time or another we have paid a penalty for some reason. Every user of a credit card must first understand that every charge on the credit card represent a loan which must be repaid. It's like the loan for buying a house or a car; the same way these loans should be repaid, the credit card debt should also be repaid and even more it should be paid in time and at least the minimum amount or else you'll end up paying more interest fees and penalties than the actual borrowed amount. So, we can say it is important that reading and understanding credit card penalties and fees to be done before you apply for a credit card and start using it. A credit card user should read, before signing, the agreement and especially what is written with small letters because those small written lines sometimes are the most important. The agreement of the credit card usually contains rules on how and when the credit card issuer can apply penalties and fees, but you should also look for the lines where it is clearly stated how and when the payments should be done. You, as the future user of the credit card need to have complete and accurate information in order to be able to take a correct decision.
What Are the Most Common Ways to Commit Identity Theft or Fraud?
It's the number one source of consumer complaints at the Federal Trade Commission (FTC), and unfortunately, it's one of the simplest crimes to commit. Identity theft involves information from your daily life, from shopping, bill-paying, and even applying for a job. Thieves take advantage of everyday opportunities to discover your personal information, including your Social Security number (SSN), bank or credit card account numbers, income, name, address, or phone number, and use it to commit fraud or other crimes.
Credit Counseling -- Why It Doesnt Work For Most Debtors
"Cut Your Payments in Half!" the headline screams. "Consolidate Your Bills into One Low Monthly Payment!"
Credit Help For Renters And Others On The Horizon
Sue is a homeowner and pays her mortgage and other bills on time like a good credit consumer. Sue's on-time mortgage payments are reflected in her credit score profiled by the three major credit bureaus; Equifax, Experian and Trans Union.
Ten Steps To Building A Good Credit History
Are you thinking of buying a house? Do you want to buy a new car to replace that old wreck? Trying to get insurance on you home, auto, or life? In each of these situations, what's on your credit report will determine if you can get a loan or insurance and what rates you'll have to pay.
How You Can Help Prevent Identity Theft
How can I prevent Identity theft from happening to me? Never leave your receipt or slip in the ATM or gas pump. Pay attention to your habits, lock up or organize and file your bills, and bank statements. Shred them using a cross shredder before throwing them away.
The Easy Way To Gain Access To Your Free Online Credit Report
When you apply for credit, those lending you the money want to know if you are going to pay them back. One way they decide if you are a good risk is to see how you've dealt with other people's money. They find this information in your credit report.
Student Credit Cards 101
If you're a college student, you probably already have a credit card. If not, you may have plans to get one or more soon. So why should you read on?
Choosing The Best Credit Card To Apply For
Always shop around to get the best deal when choosing which credit card to apply for. If you don't do your due diligence you could end up with a card that has too high of an interest rate, that has an unnecessarily high annual membership fee, etc. Here are some things to look for when checking out the different credit card offers you may receive in the mail.
Credit Cards - Why Prepay?
With prepaid credit cards, you get the practicality of plastic while choosing exactly how much debt to charge. By taking charge of your personal financing, you determine your own limits, to the penny, and change them any time you need to.
|
