Thursday, February 15, 2007
10 Dirty Tricks Credit Card Companies Play
The credit card companies do millions each twelvemonth in legitimate interest charges and fees, but are under changeless pressure level from the shareholders to increase their earnings. To do this extra money the credit card companies sometime follow some soiled fast ones to do this money. As the credit card industry goes more than competative, less money is being earned from each client from interest charges and the number of these soiled fast ones increase. To protect yourself against these unscrupulous processes that steal your money we will name 10 soiled fast ones credit card companies play to their clients so youll cognize what to anticipate and expression out for. Of course of study that there are not only 10 soiled fast ones credit card companies play to their clients but knowing at least these 10 fast ones will assist you to not be a victim.
The first 1 out of the 10 soiled fast ones credit card companies play is also the worst of them: not posting your payment the twenty-four hours it was received. This is the oldest known trick: the company have your payment in clip but it doesnt procedure it immediately; this hold will convey to the company a late payment fee. This is often owed to legitimate reasons, but the policies of many credit card companies support a processing clip that is not good to you. A second fast one is to do you pay late by changing the owed day of the month for your credit card payment. For being late the company will charge again a late payment fee and if the state of affairs repetitions for few calendar months in a row they can legally increase your interest rate. The 3rd fast 1 played by the credit card companies is a pathetic one: you can be charged a punishment fee for not using your credit card a certain clip period of time. As incredible as it might seem, this is a new maneuver of the credit card companies to take your money. Another two fast ones used are in connexion with the clients peace of mind. Both of them are connected with credit card protection and the fees that must be paid. One of them is protecting you in lawsuit your credit card is stolen, lost or used fraudulently. Almost all credit card companies make not charge a fee for this service, but there are others that do. The best thing you can make would be to avoid the latter ones. The second credit card protection fee is for protecting you in lawsuit you loose your occupation or die. For this protection, usually, the fees are too high for the benefit received, but many clients purchase it out of fear.
We are getting now to the last 5 of the soiled fast ones credit card companies play to their clients. The 6th fast one is designed to work on the psychological plan: the company is increasing your credit limit. You didnt inquire for a bounds addition of your credit but the company gave you the possibility to pass more than money. This is a psychological fast one to do you pass more than money on your credit card trick. Another bad surprise is to come up back from your holiday and happen out that you have got been charged more than for the amounts spent during your foreign trip. The committee charged for the amount spent outside the country is much higher than usual.
One of the new cozenages that have got appeared in the last old age is the card cancellation fee. This fee was adopted because a large number of the clients of a certain bank discovered the extra charges and they rushed all to call off their accounts. The bank responded immediately by adopting a policy of charging a fee for shutting an account. This pattern was also adopted by other companies. There are also other cozenages like punishment for having a large balance or charging credit insurance fees. It is of import to cognize these processes so you don't get taken advantage of and you can assist set an end to these fast ones by giving your business to companies who make not use them.