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Credit Card Companies Are Out for Your Money
You're probably thinking "Tell me something I don't know" but
in this time of low interest rates you might be thinking that
you've got a great deal since credit card interest rates are low.
Wrong. Credit card companies have a cutoff as to how low their
interest rates will go.
So when interest rates are low for lending, that doesn't mean
your credit card rate will be low as well. If you don't know, or
aren't sure, if your credit card company has a minimum interest
rate just look at the fine print on your next credit card bill.
If you can't read that small of print, and most of us can't, give
the customer service a call. If your credit card company does
have a minimum interest rate then I'd plan to look around and go
with the credit card companies that don't. Because when the
interst rates drop, you should get a break on your credit card
rate.
The fixed rate on credit cards actually rose in the last
twelve months. Why? Because the credit card companies have been
actually losing money due to record numbers of delinquencies and
bankruptcies. Those who can't pay now for their purchases in the
past are sticking their bill to the rest of the credit card
holders.
So you may think that you want to get that credit card
insurance being pushed by credit card companies that will pay
your bill if you become disabled or unemployed. Not so fast. The
average payout on a credit insurance policy is 30-50%. The
National Association of Insurance Commissions actually recommends
a payout of at least 60%. Payouts for debt cancellation and debt
suspension is in the 1-3% range. That's definitely not worth the
premiums. Get enough regular life insurance and disability
insurance to cover your debt as their premiums are much cheaper
and have greater payouts.
Beware of a credit card company trick that I recently ran
into. I mailed a payment a week early but yet was still charged a
late fee. Impossible I say. I found out the payment had to be in
the credit card company's processing center by a certain time on
the due date.
Think of my credit card payment making it's way through the
mail, to a P.O. box, then getting picked up, sorted, sent to the
processing center, opened and recorded. And this has to be done
by a certain date on the due date. Ouch. I suggest mailing in
your payment at least two weeks early.
About The Author
Christine Breen is the owner of the website www.1stop-creditcards.com which helps consumers learn
about credit cards and find a card to work for them.
MORE RESOURCES:
Credit - Google News
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