Top Five Credit Card Secrets Finance Institutions Do Not Want You to Know

1. Interest BackdatingSOLUTION: Bank at different institutions, or steer
Nearly all card issuers charge interest from theclear of delinquencies.
date a charge is posted to your bank account if4. Charges Are Negotiable
you don't pay completely monthly. But, someYou may be spending up to $50 a year extra as
charge interest from the date of purchase, daysa twelve-monthly fee on your credit card. You
before they have even compensated the shop onmay also be subject to finance charges of over
your behalf!18%.
SOLUTION: Find another card issuer, or at allSOLUTION: If you are a satisfactory customer,
times pay your bill in full by the outstanding date.the bank may possibly be willing to reduce the
2. Double -Cycle Billingannual fee, and lower the interest rate, you only
Issuers which use this mode of calculatinghave to ask! If not, you can switch issuers to a
interest, charge two months worth of interest forreduced- priced card.
the 1st month you failed to pay off your entire5. Interest Rate Hikes Are Retroactive
balance in full. This situation arises only when youMost card issuers offer a 25 day grace period in
change from paying completely to carrying awhich to pay for new purchases without incurring
balance from month to month.costs. Some banking institutions have shortened
SOLUTION: Change issuers or at all times paythe grace period to twenty days, but only for
your balance completely.consumers who pay in full monthly.
3. The Entitlement To SetoffSOLUTION: Pay totally before the rate increase
If you have funds on deposit at your bank, andor close the account.
also have your credit card there, you may haveThe lesson of this article is to firstly at all times
signed a contract when you opened the depositpay your balance totally (if possible) and secondly,
account which permits the bank to take thosealways be aware of what you are being charge
funds if you become delinquent on your creditand be ready to negotiate with your bank.
card.