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Credit Card Companies Dirty Secrets
Let’s take a look at hidden fees your credit card company might be charging you.
Let’s get right to it.
Be Aware of Surprise Rate Hikes
The first one is surprise rate hikes. This has been happening for sometime, the surprise element here is that the credit card companies are doubling or tripling rates on consumers now. So, in this economy when they potentially could be force to write-off over hundred billion dollars of an extra, they’re really cracking down, this is putting households on the top, and they‘re not telling you about it, you just going to have to find it your statement.
Watch Your Credit Limits
Credit card companies have been cutting your credit limits for sometime; they are cutting your limits right to the bone! They are cutting just over $2 to $3 dollars over your outstanding balance. It’s going to go to make a purchase, you’re over the limit, you have to pay a fee and your credit score takes a hit, because you’re now using a larger percentage of your available credit and 30% of your credit score is base on the credit that you’re using. So now it would be difficult to get any kind of loan, to get a house, mortgage, car, job, and apartment. It’s a whole domino effect. You have very little recourse and unfortunately people found out about these the hard way and it’s a surprise fee!
Beware of International Fees
This is a surprising one as well. These are fees that the credit card companies are tacking on when you make purchases overseas and they had gone up to 3% now by most of the major banks. Also the surprise element here is that you get hit with a fee even if you’re not traveling overseas, you can be buying something online ordering something from abroad and the transaction is processed through a foreign bank and you’re hit with the 3% fee.
Beware of Protection Plans
These protection plans are heavily touted as you must have it if you fear for you’re going to lose your job, we’ll protect you that kind of thing “we have your back”.
You don’t want to go for this, they in essence are going to freeze your account and they are going to charge you about a dollar a month for a 100$ dollar balance that you have, so that adds up, and you’re looking at interest rates of an increase of anywhere from 50 to a 100 percent so just say no to the protection plans.
For additional information on credit cards or related topics please visit our library of credit card articles.
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