Credit Card Dirty Tricks
There are many of us that have been badly stung by credit card companies that have charged exorbitant fees to use their credit cards. Several years ago an APR of 25% to 29% was common place which in simple terms means that if you borrow £1,000 your interest on that money would be £250 to £290 a year. Criminal when you think of it but I suppose we have to consider interest rates were much higher 8 to 10 years ago and there were fewer credit card companies on the market.
Today the low interest rates that we are experiencing have spurned hundreds of loan and credit card companies cashing in on the cheap cost of borrowing. To get approved for a loan or a credit card nowadays has never been easier. With the advent of the internet you can get approved for a loan or credit card in 10 minutes. So we all have a few 0%, low interest rate credit cards in our bags and wallets but lets find out a bit more about the sting in the tail of these cards.
1. Monthly Repayments:
Well done if you pay your bill off each month in full. Like most of us we only pay off the minimum monthly repayment; this is usually a % of the outstanding balance or no less that £5. Some credit cards will set the minimum repayment on a card at such a low amount that you inevitably end up paying the interest and nothing else. When this happens you end up with a compound interest scenario. Beware you could end up paying off a £2,000 loan for the next 20 years.
2. Credit Card repayment protection (CCRP):
Credit Card companies make a fair amount of money out of you when you use their cards. But wait they want to make some more. Just in case you die or lose your job they will offer you Credit Card protection for a monthly fee. These are usually over priced. Most credit card companies make a fortune out of these policies as most people don't understand how these fees are calculated so don't know there true worth. What most people are buying is the piece of mind.
3. Penalty fees:
If you do not pay on time you will be charged a late payment fine. These vary depending on your credit card company. The best way to prevent this happening is to set up a direct debit. You get charged for exceeding your credit limit. Again this is a very sneaky way for the credit card companies to make money off of us. Most of us will slip up without even knowing it and a charge of £25 can quite easily go unnoticed on our statements. Be diligent and don't give the card companies any excuse to make these charges.
4. Protection Plans:
This is another juicy money maker for the card companies. For an annual fee you will get protection on your card in the event of them being stolen, lost or used fraudulently. Most credit card companies usually don't charge for this and will refund you the money for any fraudulent transactions. I wouldn't suggest getting this.
5. Credit Limit increase:
You had a credit limit of £3,000 and have been diligently paying off your card every month and all of a sudden your new credit card statement says you have a credit limit of £10,000. You probably didn't ask for the increase but hey they gave it to you anyway. Psychologically this makes you think you have more money to spend but it is in fact a sneaky way of getting you to spend more money on your card. If you don't need it ask your credit card company to remove the new limit.
6. Foreign transaction charges It is usually quite convenient to use your credit card abroad on holiday or on a business trip. No need to carry large sums of foreign currency around with you. But wait for it ??.. You will be charge for this privilege (not surprised I am sure). You will be charged a commission depending on the amount you spend abroad which can vary from 3% to 5%.
7. Cash withdrawal charges: Not much new here. If you withdraw money from a cash point using your credit card you will be charged for the privilege. Remember nothing slips through. Card companies can charge in the region 3% of the amount drawn and the bad news as if this isn't bad enough, you won't benefit from any promotional 0% introductory offers that are currently running on your card.
As you can see credit card companies make money from us in more ways than we in most cases are aware of. Be smart and remember all these crucial aspects when using your credit card. You may be one of the few that limits the credit card companies from only making the bare minimum from you.
Grant Marwick is a freelance writer and owner of http://www.only-credit-cards.co.uk where you will find advice and more articles on Low interest Credit Cards and 0% Credit Cards
 Google News Updated : Sun, 07 Sep 2008 02:07:34 GMT Palin and McCain’s Shotgun Marriage - New York Times
New York Times - By FRANK RICH SARAH PALIN makes John McCain look even older than he is. And he seemed more than willing to play that part on Thursday night. An Apostle of Alaska 'Sarah Palin Is Wasilla': Town Stands Behind VP Pick Publ.Date : Sun, 07 Sep 2008 01:18:29 GMT Jenkins: Murray willing to play the spoiler - San Francisco Chronicle
San Francisco Chronicle - (09-06) 18:24 PDT New York -- Andy Murray must feel very alone just now. He's a long way from his native Scotland. He's carrying the hopes of British tennis, but the London press would really prefer him to be English. Federer beats Djokovic to reach US Open final Split stadiums for US Open semis ruffles crowd Publ.Date : Sun, 07 Sep 2008 01:44:27 GMT Movies opening this week - San Jose Mercury News
San Jose Mercury News - By Mercury News "Burn After Reading" (R): The Coen brothers follow "No Country for Old Men" with a dark comedy about two inept gym employees who get hold of a CD-ROM containing a CIA operative's memoirs. Toronto Review: The Coen Brother's Burn After Reading Pitt Rocks to Madonna Publ.Date : Sat, 06 Sep 2008 20:56:32 GMT Report: Samsung working to acquire SanDisk - San Jose Mercury News San Jose Mercury News - AP Samsung was reported Friday to be considering buying Milpitas-based SanDisk, whose revenue has diminished and stock has plummeted in recent months due to the saturated flash-memory market. SanDisk Shares Soar on Samsung Interest SanDisk Shares Surge as Samsung Considers Acquisition (Update3) Publ.Date : Sat, 06 Sep 2008 16:19:13 GMT Gates outacts Seinfeld in Back To The Future - CNET News
CNET News - Which is why Crispin Porter Bogusky, the agency responsible for the otherworldly new Microsoft TV spot featuring the clowning Bill Gates and Jerry Seinfeld, is already happy. Microsoft's Renewed Vista Strategy You Thought Vista Was Bad? Publ.Date : Sun, 07 Sep 2008 00:01:52 GMT Dodgers overtake first place - MLB.com
MLB.com - By Michael Schwartz / MLB.com LOS ANGELES -- Manny Ramirez's five RBIs propelled the Dodgers into first place in the National League West for only the second day all season Saturday after a 7-2 win over the D-backs at Dodger Stadium. Ramirez, Billingsley lead streaking Dodgers into first place Dodgers move into first place Publ.Date : Sat, 06 Sep 2008 23:14:26 GMT European space probe completes asteroid fly by - Reuters
Reuters - BERLIN (Reuters) - The European Space Agency obtained on Saturday the first images of an asteroid 360 million km (224 million miles) from earth, part of a space mission which scientists hope will help them understand the origins of the planets. Rosetta spacecraft takes asteroid photos Spacecraft flies by remote asteroid, camera stops Publ.Date : Sat, 06 Sep 2008 14:13:31 GMT Display RSS Feeds on Your Website |
PARLOT::Ebooks, Scripts,
Websites, and more... We spend money every single day on many different types... Read More Credit cards have migrated from being hip or convenience product... Read More There are times when you may be turned down for... Read More Credit card debt is a major social problem in some... Read More "I think money was stolen from my card" or "I... Read More Credit Score FactorsThe information contained on our credit reports affect... Read More The economic downturn of the last five years has affected... Read More What are the avenues available to businesses with weak credit... Read More YOU SCRATCH MY BACK, AND I'LL BUY SOME MORE BEER!Let's... Read More If gold medals were awarded for marketing consistency, the credit... Read More You're interested in getting the best credit cards for your... Read More Bad Debt IdentificationIdentifying bad debt is not as easy as... Read More Using a credit card wisely is an important step in... Read More It wasn't all that long ago that lenders blatantly discriminated... Read More Credit needed for real estate mortgage financing differs from credit... Read More Are Credit Card companies starting to feel the pinch? We... Read More Most of us want a good credit report to obtain... Read More STUDENT CREDIT CARDS With graduate debt averaging... Read More Getting your first credit card is a big deal and... Read More We have all heard the rumors?from neighbors, relatives or friends.... Read More Once you've been paying off a credit card for a... Read More Creditors will measure your credit rating based on the following... Read More Like me, you've probably been offered a fair old number... Read More Ah, the "good old days". If you are a baby... Read More Just when most people finish with school and can stop... Read More
Adsense
websites
Maximizing Credit Card Rewards
Top 7 Factors to Consider While Reviewing Credit Card Offers
Errors on Your Credit Report: What You Should Do
Defeating Credit Card Debt With Self Control
Using Credit Cards Wisely
Figuring Out the Ever Nebulous Numbers Called Credit Scores
Credit Report ? Watch Out for Parking Tickets
Credit Enhancements: Seven Tips For Enhancing Business Credit Transactions
SuperCharged Secret 4, Credit Card Utopia
Credit cards
Finding Reputable Credit Card Companies
Bad Debt Recovery
It Takes Credit To Build Credit
Understanding Your Rights Under The Equal Credit Opportunity Act
New Credit Advice: Dont Pay off Those Credit Cards!
Are 0% Credit Cards Reaching Their End?
Is Your Credit Score Costing You Money?
Student Credit Cards
Manage Your Credit Wisely
Top 5 Credit Misconceptions
Always Avoid Payment Holidays
How Creditors Measure Your Credit Rating
Beware the Shopping Mall Monster
Debit Card vs. Credit Card, What Are The Differences ?
Like It Or Not, You Have A Score To Settle! Part 1
Affordable and Reliable Web Hosting Starting at $4.49/Month
Discover the Parts of a Credit Report and What They Mean
So you ordered a copy of your credit report to... Read More
Credit Card Companies Are Out for Your Money
You're probably thinking "Tell me something I don't know" but... Read More
Identity Theft ? Additional Protection for Soldiers on Active Duty
Congress passed the Fair Credit Reporting Act several years ago... Read More
Credit Report ? Watch Out for Parking Tickets
The economic downturn of the last five years has affected... Read More
Credit Reports ? Why Your Credit Score is Important
If you have never heard of a FICO score before,... Read More
The Things That UK Lenders Like to See on Your Credit File, (and? What They Don?t Like to See!)
Lenders are quite fussy about what they like to see... Read More
The Credit Card Surprise That You Need to Look Out For
Companies that issue credit cards want to make a profit.... Read More
10 Step Credit Repair Guide
The process of clearing credit can be laborious and frustrating,... Read More
Finding and Applying for the Right Credit Card Offer Online
Anywhere you go online nowadays, you will see a multitude... Read More
How to Repair a Bad Credit Rating
If you have a bad credit rating, then you might... Read More
How Businesss Mess Up Their Credit Policies
In "Become the Squeaky Wheel" a book recently published, Michelle... Read More
Know Your Credit Card Rights
When you apply for a credit card, the application that... Read More
What Is A Credit Report?
Even if you have heard of a credit report, you... Read More
It Takes Credit To Build Credit
Using a credit card wisely is an important step in... Read More
Credit Repair: How To Deal With Your Creditors
If you are in danger of credit problems because you... Read More
Why Does FACTA Matter to Me?
FACTA stands for Fair and Accurate Credit Transaction Act. FACTA... Read More
SuperCharged Secret 5, Credit Card Utopia
LIVING IN CREDIT CARD UTOPIALet's just take a brief moment... Read More
What Should I Do If I?ve Become a Victim of Identity Theft?
Identity thieves take advantage of everyday opportunities to discover your... Read More
Identity Theft ? How Can You Prevent It Happening to You?
The nightmare of identity theft strikes an estimated 750,000 people... Read More
Do You Know Whats On Your Credit Report ?
It is important to know your credit rating for a... Read More
Finding What is on Your Credit Report
A credit report is basically a file about you kept... Read More
Home Loans ? Repair Your Credit Before You Buy
Before you take out a home loan or make any... Read More
Credit Help for Real Estate Financing: Five Categories of Your Credit Score
1. Payment History -- 35%The number of accounts paid as... Read More
How a Credit Card Can Be Your Friend
We have all heard countless stories of people over their... Read More
Credit Cards and How To Choose Them:
It may seem like a simple question but its important... Read More
Credit |