Ads
Some Fine Print Misses
When you apply for a new credit card chances are that you are not thinking about changing the credit card provider in the near future. But, if you are unhappy after using it and want to wind up the card and opt for a lower interest one - you are in for a surprise…
You are slapped with a big closure fee. Closure fees can go up to $50, depending on your issuer and you realize that you have unwittingly become contractually bound to pay the amount as early as the first time you used the card. That’s in the fine print, you missed.
Another fine print miss is the conversion fee. Each time you use your card abroad you will be charged up to an incredible 7 percent on the amount transacted. So watch out!
Now, Let’s say you are an adventurer of sorts and decide on a long break at some exotic locale and plan to avoid the conversion fee by not using your credit card at all. You are playing safe you think but you may be clocking enough time to get the credit card company to charge you an inactivity fee. Oh yes, you are not charge-free by playing safe either.
This next point is the most incredulous... We all know about deadline for payment and liabilities for late payment and assume we got it covered. So, if you are one of those who pay on the last day and think you’ve made it without any late fee, you could be wrong. Late fee is charged even if you are a couple of minutes late! Most credit card companies allocate a particular time after which you could be charged late fee.
On all these points, however, issuers may agree to lower the amount, leaving you elated about befriending these wily companies. But, hold on for a month and when your credit card statement arrives for the previous month you will be surprised with a higher interest as a punitive measure.
--
Did you enjoy this post?
Comments
Post a comment
« Secured credit cards demystified | Main | Taxes and credit cards don’t go well together »
Syndicate
Comments