Credit cards are becoming an every time need nowadays for people as this is the easiest way of getting liquid cash and at the same time the cash flow is much sound that any other form of transaction. It fulfills the wants and luxury whenever needed but when it comes to repayment people realize the hitch.
There are endless credit card companies scattered all over the country. Starting from banks to other financial institutions almost every one offers the credit card facility to their customers. But most of the times the companies keep certain things secret to the customers that put the customer in much difficult and unwanted trouble. Let us have a look at the most important 5 things that almost every credit card company hides from its customers.
- Increase in Fixed Interest Rates Cards: Most of the times people think that having credit card with fixed rate of interest is cheap and worthy but this is not the fact in real. Showing that the interest rate is fixed is just a way of eye washing of the customers. Basically when a credit card company offers a fixed interest rate it generally means that so long the company is not changing the rate of interest the Card holder needs to pay the set interest rate but the company can easily raise the interest rate whenever it desires to with a notice period say of 15 days. In order to avoid the sudden increase in interest it is necessary to keep updated to the companies’ activities and check the mails on a regular basis.
- Lessening grace period: Grace period is a very important part of the credit card system. Most of the times people nurture a wrong idea about the grace period concept of the credit cards. It used to be happened when the credit cards used to get interest free if the entire amount got paid within the grace period of 30 days. But since4 this is not that profitable for the credit card companies a number of companies either shortened the grace period and in fact some simply eliminate the grace period concept from their scheme. Thus the card holder has to pay the interest even if he does not owe it.
- Dual Penalty on One Late Payment: The credit card companies always try their best to earn maximum from the customers and this is why they charge double interest on a single late payment. But in 2009, a card act passed to help the customers and get them out from this problem. It limited the amount of late fee that a credit card company can charge on late payment and this helped the credit card holders a lot to bare the credit cards.
- Burden of Balance Transfer Checks: People often find mails much relevant as it takes a little time and a number of people start writing checks moment they get mail from the companies. But actually should not be done. In this case most of the time the balance transfer checks three to four percent of extra amount is charged with the actual balance to be paid. This is why it is always better avoid balance transfer checks.
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