10 Dirty Tricks Credit Card Companies PlayWritten by Jeremy Zongker
The credit card companies make billions each year in legitimate interest charges and fees, but are under constant pressure from shareholders to increase their earnings. To make this extra money credit card companies sometime adopt some dirty tricks to make this money. As credit card industry becomes more competative, less money is being earned from each client from interest charges and number of these dirty tricks increase. To protect yourself against these unscrupulous procedures that steal your money we will list 10 dirty tricks credit card companies play to their clients so you’ll know what to expect and look out for. Of course that there are not only 10 dirty tricks credit card companies play to their clients but knowing at least these 10 tricks will help you to not be a victim.The first one out of 10 dirty tricks credit card companies play is also worst of them: not posting your payment day it was received. This is oldest known trick: company receives your payment in time but it doesn’t process it immediately; this delay will bring to company a late payment fee. This is often due to legitimate reasons, but policies of many credit card companies support a processing time that is not beneficial to you. A second trick is to make you pay late by changing due date for your credit card payment. For being late company will charge again a late payment fee and if situation repeats for few months in a row they can legally increase your interest rate. The third trick played by credit card companies is a ridiculous one: you can be charged a penalty fee for not using your credit card a certain period of time. As unbelievable as it might seem, this is a new tactic of credit card companies to take your money. Another two tricks used are in connection with client’s peace of mind. Both of them are connected with credit card protection and fees that must be paid. One of them is protecting you in case your credit card is stolen, lost or used fraudulently. Almost all credit card companies do not charge a fee for this service, but there are others that do. The best thing you can do would be to avoid latter ones. The second credit card protection fee is for protecting you in case you loose your job or die. For this protection, usually, fees are too high for benefit received, but many customers purchase it out of fear.
| | What is a Credit Card?Written by John Mussi
A credit card allows you to buy things even though you might not have money to pay for it right away. The company that gave you card lets you spend up to an agreed sum and then makes additional money available to you as you pay off what you've spent. You must pay at least a minimum amount by due date, generally once every month. You will pay a finance charge or interest on any amount you do not pay by due date. Today our entire financial system relies on credit. Credit cards can help to make your life that little bit easier- you can use it to pay for goods or services, either over phone, online or over counter. Credit cards can enable you to have that little extra spending power when and where you need it. In addition to paying for purchases you can also use your credit cards in order to withdraw cash from a cash machine, not only in this country but all over world. It is increasingly difficult to operate in modern economy without a credit card. Credit cards allow people to manage emergencies, to shop conveniently in High Street, by telephone or over internet and are useful when travelling abroad. With each credit card you will have a limit to amount of money that you can spend on it. This is known as a ‘credit limit'. You can withdraw money and pay for goods and services as much as you want up to your credit limit, effectively borrowing capital from your credit card provider. Every month you will receive a credit card statement that will detail both your balance (the amount of money you have either withdrawn or spent) and any interest that has accrued upon it. You can then either pay off full amount or make minimum payment.
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