Your Credit Card May Be Costing More Than You Think!
Do you know what your credit card is truly costing you? Many people assume that they do, but aren't familiar with the hidden fees that many credit card companies are charging. In fact, if you don't keep close tabs on your credit card, you may end up paying hundreds of extra dollars per year-without ever really knowing it!
And if you're trying to budget your money, those hidden fees can add up!
Let's take a look at some of the most common credit card fees, and then talk about how you can avoid them.
Grace Periods
In the past, we could always count on grace periods before we ever had to start paying interest. For example, if we charged our card to the limit, and could get it paid off before the grace period expired, then it would be like a free loan-we wouldn't have to pay any interest.
Unfortunately, the credit card companies are making this harder and harder to do. For starters, many of them have reduced the traditional 30 day grace period to 20-25 days.
If you hold a credit card, but didn't realize this, then you're likely paying interest without even knowing it! What's worse is that more and more credit card companies are eliminating grace periods altogether. That means if you charged lunch today at noon, at 12:01 pm, you would be already paying interest on it.
How about your credit card? You need to take a close look at the fine print and find out what kind of grace period you have. If your credit card company has reduced it significantly, or eliminated it altogether, you should seriously consider canceling it and getting a more user-friendly card.
Late Fees
When is the last time you checked to see what amount your credit card company charges you for a late fee? The truth is that these fees have doubled in just the past ten years, and that, combined with the reduced grace period, means that the credit card companies are raking in a lot of dough on late fees!
If it's possible, you should try and send off the check (or electronic transfer) the day that you receive your credit card bill. There are three reasons why it's important never to be late. The first is obvious; you will want to do everything in your power to avoid a hefty late fee. Next, if you are late, it will likely be reported to the credit agency and you will have a bad mark on your credit report. The third is the direst, and we'll discuss it below.
Interest Rate Hikes
Did you know that if you are late--even one time-on your credit card payment, the company will in all likelihood raise your interest rates? That's right; one late payment gives them the right to do it. What's more, that isn't just limited to your credit card payment. Any late payments from any lender that show up on your credit report gives them the justification to raise your rates, so be careful!
Copyright (c)2005 by Michael Ambrosio. You may publish this article on your site or in your newsletter provided this resource box remains in tact. Michael Ambrosio is the author of many credit related articles. Visit his website today: http://www.yourcreditandyou.com and rebuild your credit.
MORE RESOURCES:
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Credit card proposal may get vote in Congress CNNMoney.com - NEW YORK (Associated Press) - Deepening economic distress and concern over consumer debt could help legislation that would overhaul practices of credit card ... |
Ill. credit unions help with college aid Chicago Tribune, United States - AP CHICAGO - Authorities say eight Illinois credit unions are stepping up to plug college funding gaps wrought by the credit crunch for student tuition aid. ... Ill. Credit Unions Help With College Aid State Secures More For Student Loans Illinois Offers $100 Million College Assistance Fund |
Impact of the Credit Crunch on UK Mortgage Product Structures MarketWatch - Although it is unlikely to recover to pre-credit crunch levels, the mortgage market needs to stabilize in order for a traditional and affordable mortgage ... |
 Wall Street Journal | Credit Suisse Ex-Broker Pleads Not Guilty Wall Street Journal - By CHAD BRAY NEW YORK -- A former Credit Suisse Group broker pleaded not guilty to charges he and another broker misled investors about purchases of ... First indictments of brokers in auction-rate securities heist In Auction Securities Crisis, Are Brokers the Victims, Too? |
Credit due to the man who helps us beat the cheats Telegraph.co.uk, United Kingdom - Experian, the credit-checking giant, had just demerged successfully from its unlikely GUS stablemate, the catalogue retailer Argos, and Robert was a new ... New Experian Research Highlights the Effects of the Mortgage ... |
A Report on the UK Consumer Credit Market in 2007 and an Analysis ... MarketWatch - The UK consumer credit market has continued to contract in 2007, as various issues such as the liquidity squeeze, high personal debt levels and weaker ... |
Credit freeze helps thwart ID thieves Arizona Republic, AZ - OK, so you'll never see Credit Freeze in a comic book battle of good against evil wearing a cape and long underwear. But like other superheroes, ... ID protection can be do-it-yourself |
Henry Schein Announces New $400 Million Credit Facility MarketWatch - This new facility, which matures in September 2013, replaces Henry Schein's current $300 million revolving credit facility, which was scheduled to mature in ... |
 CCTV | New CEOs Are Untainted by Credit Woes Wall Street Journal - Herbert M. Allison Jr. and David Moffett were on a short list of financial-services executives untarnished by the credit-market troubles. ... Video: Feds Take Over Mortgage Giants Paulson Taps Allison, Moffett to Run Fannie, Freddie (Update1) |
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