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Things Your Credit Card Company Won't Tell You
No matter how religiously you make all your credit card payments and for how long, sooner or later you fall into the universal default trap. One slip and your privileges vanish and rates shoot up.
According to card companies, it's risk management. To consumer groups, it's about profit alone. The best way to avoid the problem is to pay all bills on time and in case of a disputed bill, get it sorted out before it reaches collection status.
Nowadays college-going kids are able to get credit cards as easily as a beer, asw they make good risks for creditors. Now card issuers are on the verge of tapping high school students. What parents can do to avoid their children from getting credit cards is to be extra vigilant about their personal information finding its way to databases. It's also a good idea to educate them on the evils of credit cards and monitor spending.
Rewards have become a major tactic for credit card companies to outdo competition. But benefit programs like frequent fliers frequently have a catch like massive interest rates and high annual fees. Work out how much you stand to gain from these programs and see if it makes sense to make use of them. Credit card info.com reports:
"We're just waiting for you to screw up." Many things can bump your credit card interest rate into the red zone, but nothing faster than what's called "universal default." You can make all your credit card payments religiously and for a long time, but fall behind on your electric bill and, suddenly, you're a deadbeat - who will be charged accordingly. Rates can change on short notice, from low and reasonable to 25 percent or more.
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