Credit Card Tricks
The best course of action to take sometimes isn't clear until you've listed and considered your alternatives. The following paragraphs should help clue you in to what the experts think is significant.
Think about what you've read so far. Does it reinforce what you already know about credit crad tricks? Or was there something completely new? What about the remaining paragraphs?
Credit card companies have all sorts of tricks to fool your wallet and to raise your bill. While probably not fair, all the tricks that are legal, so you have no alternative but to stay as information as possible to protect yourself.
Read your statement, immediately report any irregularities and look at these 20 sly tricks credit card companies. Start saving for the cost now.
1. The old bait and switch
So, you have a clever plan. You will apply for good credit card that gives you tons of frequent flyer miles, putting all your purchases on it, and then to the Bahamas in February. Stop - miles you earn, if any, might you not more than Hope, Arkansas
When and if you get this card, study the terms carefully. If you do not qualify for a big card, credit card company sends a completely different card with different terms. If not what you want, do not activate the card. Contact the company and cancel the account.
2 Address Music
Want to play hide and seek with your credit card company? No? Too bad. Tag, your it. Here's your late fees.
Credit card companies sometimes change their payment obligations PO Box. If you send your payment to the wrong, perhaps meander around the postal system or your credit card headquarters for a while before finding their way to the checkout. This means that you are responsible for cost's and your interest rate will be raised. There will be increased if you have one super-duper low rates - guaranteed.
To avoid falling for this trick use the envelope in your statement. If you use a different envelope or use online banking, check the address on your statement each month or call the company to verify addresses. Always pay early to avoid last minute confusion.
3 End of the cost in minutes
If you're five minutes late it could cost $ 35. You see, even if your due date may be 15 months, after further examination of your statement, you can see that it actually is because 1:00 So if Harvey the letter carrier took a few minutes of shut eye at the cul-de-sac, will be charged late fees and higher interest rates possible. Check your bank statements to see what time and due date of your payment and send it in early. Learn more.
4-Over-limit fee
This fee is a no-brainer - do not go into. But what you do not know the little tricks credit card companies use to push you over the edge.
A Bankrate reader wrote us to describe how the new credit card that pushed him to the border.
He applied for a card with high credit limit and requested a balance transfer to pay off another card. He received a new credit card and hit with over-limit fees-for the first time he used it. Apparently the credit card company gave him a card with a limit much lower, and divert a lot of their balance as the card can hold. So when he got his card, did not know him, it's maxed out already. Learn more.
5 Advance the cost and level
Do not take money from your credit card. Read the fine print on your statement and you see it is a very bad idea. Your card may have a very low to the purchase, but if you take money down, get ready for a surprise. The level of advance is much higher. And there is no grace period - you start paying interest immediately.
Apart from paying high interest rates on cash you withdraw, you will pay a fee, usually 2 percent to 4 percent of the amount advanced. And your payment will be applied against a lower interest balances before they apply for your advance. Learn more.
6 Reverse the late payment, but up to speed
Credit card company to forgive late payments, but could still punish you by raising your rates. Say you fall for the tricks that are always changing-mail-address. You call and scream until they reverse the late payment fee. But next month, when the bill comes, you'll see that you now bear interest at a much higher because you're late on payments. A Bankrate reader told me happened to him. Learn more.
7 Increase the speed of other accounts
Your credit card company can use your late auto loan payment to justify the rate increase. They control the frequency of your credit report and look for late payments to justify raising interest you. Learn more.
8 fixed price is not fixed
A fixed rate means that credit card companies to give 15 days notice before raising interest you. You can call and ask them to lower, but they did not. How to request a lower rate.
9 Improve your level without any reason
They do not need a reason. They can only do that - it's in the contract. If they are not going to give a lower price, get a new card and cancel the old. Looking for a better card here.
10 "free gifts" that cost a bundle
Do you really think they'll give you something for nothing? Dispose of them offers that come in your statement. Learn more.
11 Selling credit card theft insurance
You do not need theft insurance for your credit card. If it gets stolen, you are only responsible for $ 50 at most. Learn more.
12 Sale and disability coverage
Credit insurance will make debt worse, if ever kick in. a Bankrate reader wrote to say that he had cancer and that credit card companies can find a reason to not change the health insurance even though he paid for it every month.
But credit card health insurance is a very bad idea as well. Even if you do not need to make a payment, the debt pile all the time. And you can not use the card for a good time. Learn more.
13 Setting a low minimum payment
It will take forever to pay off your balance if you pay only the minimum. Most credit card companies that pay a minimum of 2 percent of the debt. In this course, you have to pay to live. To see how long it takes to pay off your credit card, using our real cost of paying the minimum calculator.
14 Cards that cost more in fees than they give credit
If you have bad credit, you may be a victim of very bad business card credit card with $ 360 in fees leaves you with a credit limit of 19. Learn more.
15 balance transfer fee and low disappear
If you are not careful, you get socked with unexpected fees and soaring prices when you transfer your balance. Before you transfer a balance, ask if there is a cost. Also, ask how long it lasts low. This figure is low on credit card offers are usually only good for six months. If you are late payments, low immediately replaced with a much higher level. Another warning: When you transfer balances from one card to another, waiting to see the balance appear on the new card before closing the old.
Do not be fooled. Use the guide step-by-step to balance transfers.
16 Zero-percent offers - with a big catch
Offering zero-percent Voice like a good idea until you miss a payment or introductory period ends. After that, you end up with interest rates sky-high.
17 The cost for charging overseas
In addition to the cost of 1 percent currency exchange rates on Visa and Mastercard, some major banks to charge a 2 per cent on credit card and debit card purchases made outside the United States. After spending a vacation worth it, costs are added. Learn more.
18 Shrinking grace period
The grace period is the time between the date of the report and the date of payment-due. Many credit card companies will shrink to 20-day period, which means that when you get your bill, you can pay interest if you carry a balance. Learn more.
19 credit Prepaid cards gifts worth less than you pay for
The cost on these cards to make them worth less than they cost. And they can run fast - making them useless. You would be better to give money. Learn more.
20 Is anyone there?
If you wish to speak with customer service, you better have plenty of time to kill. Credit card companies do not want to save money with their costs. So they will transfer you and put you on hold until you're blue in the face. The name of the game is to defeat the customer until they give up and go.
This trick is not limited to credit card industry, either. When I want to lower my bills, spend a mobile one particular company and half an hour to put me on hold, transfer and "accidentally" close to me. Persistence pays off - but exhausting
Don't limit yourself by refusing to learn the details about credit crad tricks. The more you know, the easier it will be to focus on what's important.
