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

1. Interest Backdating

Nearly all card issuers charge interest from the date a charge is posted to your bank account if you don’t pay completely monthly. But, some charge interest from the date of purchase, days before they have even compensated the shop on your behalf!

SOLUTION: Find another card issuer, or at all times pay your bill in full by the outstanding date.

2. Double -Cycle Billing

Issuers which use this mode of calculating interest, charge two months worth of interest for the 1st month you failed to pay off your entire balance in full. This situation arises only when you change from paying completely to carrying a balance from month to month.

SOLUTION: Change issuers or at all times pay your balance completely.

3. The Entitlement To Setoff

If you have funds on deposit at your bank, and also have your credit card there, you may have signed a contract when you opened the deposit account which permits the bank to take those funds if you become delinquent on your credit card.

SOLUTION: Bank at different institutions, or steer clear of delinquencies.

4. Charges Are Negotiable

You may be spending up to $50 a year extra as a twelve-monthly fee on your credit card. You may also be subject to finance charges of over 18%.

SOLUTION: If you are a satisfactory customer, the bank may possibly be willing to reduce the annual fee, and lower the interest rate, you only have to ask! If not, you can switch issuers to a reduced- priced card.

5. Interest Rate Hikes Are Retroactive

Most card issuers offer a 25 day grace period in which to pay for new purchases without incurring costs. Some banking institutions have shortened the grace period to twenty days, but only for consumers who pay in full monthly.

SOLUTION: Pay totally before the rate increase or close the account.

The lesson of this article is to firstly at all times pay your balance totally (if possible) and secondly, always be aware of what you are being charge and be ready to negotiate with your bank.

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