Credit Card Tricks

I found this interesting article on Yahoo Finance about the confusion of Credit Card Statements. They are written to help squeeze every last drop of money out of your pocket. They have a trigger clause in there that allows them to increase rates if your credit history is poor even if your card is current and you have never been late.

I also found out that even if your payment arrives on the due date it could still be marked as late and you will be assessed a late fee. How? Well if your payment gets there late enough in the day it will not be counted until the next day. Making the payment “late”.

Linda Stern points out a couple “tricks of the trade”;

“If your credit history profile changes at all, they can view that as a signal to raise your rates. Over-limit fees. If you have a $5,000 credit limit and you use your card to buy something that costs $5,010, don’t expect the charge to be denied. Instead expect your issuer to charge you a fee of $30 or more. Maybe you think that’s worth it for the convenience.
Due times, not just dates. Many, if not most, issuers now consider a bill late if it arrives on the due date after a certain time of day — typically before the mail is delivered. Then you can get busted for being late, a situation that can jack up your rate to levels over 20 percent and add another $30 or more in fees.”

These tactics are sad, but many credit card companies use them so fight back. Pay off your Credit Cards. Cash is their kryptonite!