Stay Informed and Don't Fall Into the Trap of Credit Card Companies
Credit card companies are real businesses and they are here to make profits from us. The traps and tricks they use to make profits are buried in fine prints. Thriving on a persons inability to repay his monthly balances on time, credit card companies fill up their coffers. Staying informed and using the credit card wisely is the only option that will help a credit card holder survive this onslaught. In this article we look at few things credit card companies use to get money out of your pocket.
Cash Withdrawal
Cash withdrawal by using credit cards attracts huge APR's and a cash withdrawal fee. The APR's can go up wards of 22% and can jeopardise your financial situation. Not just cash withdrawal from ATM's, if you play poker online and fund your gambling payments with your credit card, get ready for a surprise, you will be charged an cash withdrawal apr- shocking! Isn't it? Credit card companies send you leaves of checks to 'facilitiate' easy cash withdrawal. Use them and you are heading for a good high APR for cash advances. The message is clear- keep a check on using credit cards for cash advances.
Your credit limit increased
This very fact makes some people jump in their seats with joy. Wow! Now I can borrow more- this statement rings in their heads? But is it all that rosy? Remember credit card companies by increasing your credit limits want to drive you in a kind of buying frenzy, so that you borrow more and pay more interest to them. It is a trick, to earn more revenues. Don't get lured in and spend recklessly. Let them increase your credit limits, promise yourself that you will always use the credit card wisely.
The APR Drama
Nothing is much more complicated as the terms and conditions on APR rates that come with a 0% intro APR credit card. The fine prints usually describe different APR tiers for purchases, balance transfers and cash advances. Also, the benefits of 0% APR vanish as soon as you default on your repayments and regular high APR becomes applicable. The credit card companies are particulary strict about it. Second trap the credit card company use to get more clients is that they advertise monthly rates instead of APR for example, a monthly rate of 1.5% can look very attractive, but translated into APR terms it is a whopping 19.5 %.
So, you get the picture. Who will stay safe from credit card companies clutches? The one who uses his credit card wisely, and always reads the fine prints carefully before accepting that plastic.
Cynthia Stewart an expert author and credit card consultant, provides great American Express credit cards tips. Read more credit card articles at his credit card website.
Article Source: ArticlesBase.com
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Credit Card company's obligations to an applicant?
What is a credit card company's legal obligation to an applicant once it has received your application regarding approval or denial of credit?
Yeah, MadMan....kind of silly of me to think that an American corporation should ever have to answer to consumers or the law. They should certainly be allowed to do anything they want whenever they want because that's freedom, right? Just suck up everything this country has to offer but never contribute anything to it's prosperity. And people wonder why there is a need for the new Consumer Financial Protection Bureau. Anyway, my question has to do with adding my spouse to my existing account. After many hours on the phone, they've added her as a joint user but not a joint holder which is what was requested when we submitted a new application for joint credit. They thought that this bait and switch would make me go away, but I'm looking for a disposition of denial or acceptance on the new application. I suspect that they have not sent me a letter of denial because they are afraid of losing my business, so they gave me what I essentially already had without addressing my
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If a merchant refuses to refund a charge made on a credit card, will the credit card company still refund it?
assume that the product / service was not delivered as represented. Specifically , this is a debt reduction service that promised certain debt reduction, but did not deliver. However, they claim that they delivered the product as promised.
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can't cancel subscription?
I subscribed to an online service. It can be cancelled anytime, but you have to call. I have called repeatedly and can't get through. Today I called it said they are closed please call back during business hours 6am-6pm Mon-Fri. I called at 8:30 today, Wednesday...should be open. Can I call my credit card company and have future payments blocked? Any suggestions? This is a well known site. Never had a problem with the service, just decided to cancel and can't...
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