The Credit Card Surprise That You Need to Look Out For
Companies that issue credit cards want to make a profit. No one disagrees with that. The problem is that, we as consumers have, is when they have hide or disguise what it really cost for you to use a card.
Here are some ways that you could be paying more, not even knowing it for your credit cards.
Those Teaser Rates
As these rates are low at the beginning but rise after six months or a year. This is a popular way for credit card issuers to attract new cardholders. I don't know if you're aware of this but when the low rate expires, any balance that you may have left on the card automatically jumps to the new rate and just not on new purchases. This is something you should discuss or read before you even get a new credit card with low teaser rates
Those Costly Cash Advances
There is usually both a finance charge or interest and a transaction fee for cash advance cash even though the as may say "no finance charges". There is no grace period for that cash advance. You will pay all the interest from the day you take that advance. The transaction fee may be as high as 2-5%.
Extra Fringe Benefits
Cards that were offering benefits like percentage discounts, rebates, purchase protection, etc., may have been cutting back on those benefits and without any notice. Watch your mail when you get those updated versions for your credit card. If you don't read it, then you didn't know it changed and unfortunately it's your fault.
The Grace Period.
These high limit cards may sound great but may not have a grace period. If you ever noticed on your credit card bill, you may receive the bill five days before the due date. How are you supposed to then pay your bill on time?
If you don't want to take any chances in having to pay a finance charge, then pay your bill in full each month. If you receive your bill late, call the credit card company and tell them that.
Two cycle billing.
Two cycle billing means the credit card issuer charges interest the first month that you don't pay your of balance in full. Always read through your terms and conditions on your credit card bill and if you have any questions just call the credit card company and ask questions!
Copyright 2005 Fern Kuhn, RN
Specializing in Diabetes
http://www.diabetestestingcenter.com
http://www.mortgageratecenter.info
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 Telegraph.co.uk | Citigroup Posts $2.5 Billion Loss on Write-Downs New York Times, United States - By LOUISE STORY Hobbled by the credit crisis at home, Citigroup has limped through nine months in the red, reporting a $2.5 billion quarterly loss on Friday ... Credit Costs Weigh on Citigroup Citigroup credit default swaps narrow 15 bps-Phoenix Credit Costs Weigh on Citigroup |
 The Money Times | Ackermann says credit crisis end in sight Financial Times, UK - Josef Ackermann, Deutsche Bank’s chief executive, on Thursday said the credit crunch was at “the beginning of the end” as banks and regulators have taken ... 2nd UPDATE: JPMorgan 2Q Net Down 53% On Credit Woes, Markdowns JP Morgan: The Legacy of the Credit Crunch Why No Outrage? |
Studying up on credit scores Chicago Tribune, United States - In matters of money, a credit score assesses your financial responsibility. And just as with taking your first practice test, your score may be low when you ... Given a Shovel, Digging Deeper Into Debt |
Dollar Rebounds From Record Versus Euro as Credit Turmoil Eases Bloomberg - The US currency also rose versus the yen on signs US investment banks will withstand credit-market losses and the Federal Reserve and the Treasury proposed ... |
 BBC News | Credit crisis: Merrill Lynch to sell Bloomberg stake and keep HQ after Tehran Times, Iran - The loss was due to write-downs of $9.4bn on the value of mortgage holdings, credit-related derivatives and instruments guaranteed by crisis-hit monoline ... Merrill Drops After $4.65 Billion Second-Quarter Loss (Update2) Quarterly loss at Citi smaller than expected, but Merrill disappoints BlackRock shares soar on earnings, Merrill stake move |
$10m W/Bank Credit: Boom time for small-scale mining The Punch, Nigeria - This was the scenario, which the World Bank set out to help Nigeria change in 2005 when it granted the country $120m credit under the Sustainable Management ... |
Mortgage sales pressure fuelling credit crisis: ACTU ABC Online, Australia - The Australian Council of Trade Unions (ACTU) has accused banks of fuelling the credit crisis by forcing staff to push mortgages onto people who cannot ... Banks 'pushing' families into debt Banks lean on staff to push loans |
No deals for debits at the pump Detroit Free Press, United States - I would have paid the same price if I used a credit card. Bring the Benjamins and you'd get that super-low price -- OK, low by today's standards -- of ... Gas stations turning to using 'gift |
Teton County development plagued by credit crunch Fox 12 Boise, ID - Developer Bill Reid said a nationwide credit crunch prevented him from winning more financing for the 1350-acre Huntsman Springs project. ... |
Deals and takeovers are being done despite the credit crisis Telegraph.co.uk, United Kingdom - So, tapping the credit market for a cool £10bn to finance the acquisition of companies such as Alliance Boots or J Sainsbury is simply out of the question ... |
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