#1 Beware Of Universal Default The most hideous fact about this predatory banking system is Universal
Default. If you see anything about Universal Default mentioned
in the little tiny brochures they send you now and then, get rid
of that card. They will monitor your credit report to see if you
are ever late on anything, if you have too much debt to your income,
or you just carry high balances on your credit cards. If so, you
are a high risk to them and the law allows them to jack your interest
rates to the moon to protect themselves.
#2 Huge Fees On Cash Advances The card companies routinely charge up to 30% interest for cash advances!
You will end up paying off the debt two to three times at those
rates. How many times do you have to pay off the debt? NEVER take
a cash advance, unless it’s an emergency!
#3 Teaser Interest RatesThey lure you in with low rates, however, after a period of time,
they can go to over 20% interest. And miss a payment or pay them
late, and you can go to over 30% interest!
#4 Never Get A Credit Card Where You Do Your Checking Or SavingsIf you missed a payment, or stopped paying them, they usually take
the money from another account. It happened to me; I went into
overdraft on my checking and instead of taking it out of savings
like they use to do, they added it to my credit card and are charging
me high cash advance interest rates over 20%!
#5 No Grace Period CardsUltra low interest rate cards sometimes offer no grace period, however,
they charge interest from the date of the first purchase. Read
all the fine print before you sign up for any card! Avoid them
at all cost.
#6 Short Grace PeriodsSometimes they give you twenty five days to
pay with no penalty, however, they change the numbers at will and
if you are not careful and they shorten the date and you don’t notice
or have automatic withdrawal, they will nail you with up to $35 penalty
every time you are late, and that could set off wave of other cards
also raising their interest rate to over 30% under “Universal
#7 Minimum PaymentsThe card companies only put a bare bones minimum payment each month.
Usually a little more than the total interest for that month if
you have high rates. Well, at that rate, it could take twenty to
eighty years to pay off your debt, and you will pay two to three
times the amount in interest!
#8 Two Cycle BillingSome cards use a two cycle billing process, where they charge two
months of interest if you go from paying the card off each month,
to paying installments. Avoid this by paying off the card in full
#9 Negotiate a Better Interest RateJoining consumer credit counseling is going to trash your credit
for eleven to thirteen years, and all they will do is lower your
interest rates. Usually, you can get the card companies to do that
on your own. If not, threaten to close the account and raise your
voice. I recently read that the creditors are starting to install
software to detect increased levels of anger, and you might get
switched to another department who can help you. If not, tell they
you want to close the card right now and pay it off as soon as
possible. That worked for me a couple times to get rid of high
#10 Be Careful Of Zero Interest Rate PurchasesUnless you plan to pay off your furniture or jewelry store purchases
before the zero interest period, your entire accumulated interest
since you opened the account will automatically be added to the
balance the day after the promotional period ends. This means,
if you buy something on zero interest for two years, pay it off
before two years to avoid two years of finance charges being added
to the principal balance.
That’s our report, Ten Unknown Credit Card Facts. If you are having
difficulty paying the credit cards, or your interest rates are very
high, and all you are paying is interest, then you need to do something.
We have prepared a report that outlines the good, the bad, and the
ugly about Debt Settlement.
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