Apply for a Visa Credit Card Online
When you apply for a creditcard online, there are several things that are helpful to know. In this credit card debt article we’ll give you information on how to get the best credit card rate and how to do a credit card balance transfer.
Interest Rates Can Be Raised Even If You Pay On Time
As a credit card user, there are several things you should know about companies issuing creditcards . Number one is that even if you make your credit card payments on time each month, the credit card companies can raise your interest rate automatically if youвЂ™re late on payments elsewhere. This means that if you are late on another credit card payment, or the phone bill, the home loan, or simply because the bank thinks you have taken on too much debt, they can raise your interest rates. This is known as the вЂњuniversal defaultвЂќ clause and is becoming a standard clause in credit card agreements. Banks think that if you are neglecting bills elsewhere they donвЂ™t want to risk not getting paid either.
Which Are You?
Here’s the credit card industry’s jargon for its customer categories:
The Lowdown on Late Fees
There is no limit on the amount a credit card company can charge a cardholder for being late on a payment, even if itвЂ™s an hour late. Before 1996, late fees ran $5 or $10. Then in 1996, the U.S. Supreme Court in Smiley vs. Citibank lifted the existing restrictions on late penalty fees, causing them to soar, reaching upwards of $30. Credit card companies have almost doubled their revenue from charges for late fees, over-the-limit fees, and fees for returned checks. It is possible these penalty fees could rise as high as $50.
Read the Fine Print
Always read the fine print on your credit card agreement. Tucked into the fine print that people so often ignore are provisions that can add up to hefty fees, penalties and rising interest rates. Below are some of the important sections of a typical contract
- Spending Limit вЂ“ The credit line may be increased, reduced, or canceled at any time.
- the account is in default,
- the company suspects fraud
- late payment
- bounced or unsigned check
- copy of statement
- payment by phone
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