Even if you believe that you are conducting your credit life properly, there are some things that you likely have not considered. Bankers have a lot of tricks up their sleeves to nickel and dime you out of your hard earned money.
- Advance notice on changes in your contract may not be an advantage.
The new CARD act that supposedly protects customers of credit card companies from exploitation also says nothing about keeping rates the same even with advance notice. This means that any credit card that wants to raise your rates can still do so as long as they give you a 45 day notice.
Credit card companies understand that they will actually get less action overall on changes in a contract if they send an advance notice. Most people receive the notice, note the change and the due date for action, and put the notice aside until later. Of course they forget about it when the due date arrives. The changes, usually a rise in APR or a revoke of negotiating rights, then take place, and customers have no recourse. After all, they were warned ahead of time!
- If you are a student, you are in the crosshairs of the credit card companies. Be very careful.
The credit card companies are now simply mailing offers of credit cards directly to the parents of students. The law is being followed, and the companies are experiencing no drop in signups. Although you might think that the parents of students are more responsible with money than students, the mailings are still getting to the students. Credit card companies mail the offers out during holidays and summers, time periods when they expect many of the students to be back at home with their parents.
- There is still such a thing as the "double billing cycle," so do not be fooled by different language.
The CARD act supposedly did away with double billing, which is a method of interest calculation that always worked against the consumer. However, there is virtually no change in the calculation of interest for credit card customers who do not have a grace period instituted in their contract with the company.
Somehow the CARD rule states that customers without a grace period have no recourse when it comes to the new rules. Basically, there is no change at all for accounts without a grace period, and so these people can still be double billed, no problem.
Make sure that you are meticulous in checking your credit statements and keeping up with your finances. Your credit card may be a convenience, but in exchange for this convenience, you give the bank a license to try anything. It is par for the course, so make sure to follow the tips above and always keep your eyes open for new schemes!
None of these tricks are illegal. Most of them have to do more with the ignorance of the populace than with anything else. Stay on top of your financial life. Here are some of the most important things that your credit card company does not want you to know.
- Advance notice on changes in your contract may not be an advantage.
The new CARD act that supposedly protects customers of credit card companies from exploitation also says nothing about keeping rates the same even with advance notice. This means that any credit card that wants to raise your rates can still do so as long as they give you a 45 day notice.
Credit card companies understand that they will actually get less action overall on changes in a contract if they send an advance notice. Most people receive the notice, note the change and the due date for action, and put the notice aside until later. Of course they forget about it when the due date arrives. The changes, usually a rise in APR or a revoke of negotiating rights, then take place, and customers have no recourse. After all, they were warned ahead of time!
- If you are a student, you are in the crosshairs of the credit card companies. Be very careful.
Although the CARD act was supposed to get credit card companies to focus away from college students, it really did nothing of the sort. The loopholes in the law are so huge that credit card companies had no problems in dancing around the so called "regulations." Here is how the credit companies are doing it.
The credit card companies are now simply mailing offers of credit cards directly to the parents of students. The law is being followed, and the companies are experiencing no drop in signups. Although you might think that the parents of students are more responsible with money than students, the mailings are still getting to the students. Credit card companies mail the offers out during holidays and summers, time periods when they expect many of the students to be back at home with their parents.
- There is still such a thing as the "double billing cycle," so do not be fooled by different language.
The CARD act supposedly did away with double billing, which is a method of interest calculation that always worked against the consumer. However, there is virtually no change in the calculation of interest for credit card customers who do not have a grace period instituted in their contract with the company.
Somehow the CARD rule states that customers without a grace period have no recourse when it comes to the new rules. Basically, there is no change at all for accounts without a grace period, and so these people can still be double billed, no problem.
Make sure that you are meticulous in checking your credit statements and keeping up with your finances. Your credit card may be a convenience, but in exchange for this convenience, you give the bank a license to try anything. It is par for the course, so make sure to follow the tips above and always keep your eyes open for new schemes!
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