6 Things Credit Card Companies Will Not Tell You
Getting a credit card can be a difficult process. Fine print and hidden fees make the process a nightmare, and your credit card companies make sure they play some things very close to their chests. Here are some things credit card companies won’t tell you, brought to you by Madison Banking Rates.
1. We Want You to Make a Mistake. Credit card companies want you to miss a payment or only pay the interest. That is how they make money. Furthermore, even if you pay your credit card bill on time, late payments on electric or other bills can affect your credit card rates. Hidden fees and tricky due dates are intended to force customers to pay more than they planned. Look at all the fine print before you sign anywhere.
2. Don’t Ask, Don’t Tell. You can get your credit limit raised, your payment date lengthened, and get rid of annual fees, late charges, and balance transfer fees simply by asking. While your request may be refused, keep in mind that it cannot hurt to ask. A higher credit limit can help with purchases and raise your credit score. Use other bill payments as an excuse to lengthen your credit card bill due date. Threaten to switch to another company to convince them you mean business, and you want unfair fees taken off.
3. Good Behavior Gets Rewarded. If you have paid your bills on time for the past several months, you might be eligible to have your bad credit history removed. Alternately, you can re-age your account, making a current late payment go away. Late fees end, and you are no longer consider delinquent by the company, although you still owe the full amount of money.
4. We Go Straight for the Next Generation. Your children are credit card companies’ future customers. Since kids can get a credit card as young as sixteen, make sure to teach them good spending habits. Maybe start them out with a debit card and then progress to a lower interest student credit card. Make sure they know that keeping their credit score high is important.
5. Credit Cards Assist in Identity Theft. Credit cards are one of the easiest ways for identity thieves to steal money from you. They can get you to put your number into an online site and then use that information to make purchases in your name. If they get their hands on your social security number, they can open a credit card in your name and steal money from you that way.
6. Our Rewards Aren’t as Great as They Look. Rewards credit cards frequently offer flashy deals which sound great, until you realize you could never spend enough to see any rewards come back to you. Other cards place caps on cash back rewards or have blackout dates for free airplane flights. Furthermore, an offer can be canceled within fifteen days of it being posted as long as the credit card company sends you a notice.
Whenever you apply for a new credit card, keep these pitfalls in mind and always read the fine print. Let Madison Banking Rates help you find the lowest credit card interest rates for your area.
