7 sneaky terms and costly fees you've got to avoid on your credit cards
from 
..:: kozan ::.., posted about 1 month ago
7 sneaky terms and costly fees you've got to avoid on your credit cards
A low interest rate. No annual fee. Sounds like a great credit card, right?
Not necessarily.
While those are still the most important factors to consider, credit card issuers have been busy changing other terms and conditions that can make their cards much more expensive than you expected.
Here are seven things you want to see -- or in some cases, don't want to see -- from any credit card:
1. No universal default clause.
You may be religious about making your credit card payments on time, but one late payment on your cable bill or unpaid DVD club account and your card company may double or triple your interest rate without notice.
In fact, anything that lowers your credit score -- a bounced check, late payment to any creditor, or appearing to take on too much debt -- can be an excuse for the credit card company to zap you into universal default.
Check the card's terms and conditions for the default rate (usually under "Other APRs") and anything that mentions changes in your interest rate. Look elsewhere if you see wording similar to this: "If cardholder is reported as delinquent on an account with any other creditor, we may increase the APRs on your account up to the maximum default APR."
2. Limited change-in-terms provisions.
Most major issuers deny that they have universal default clauses, but they sneak around it with change-in-terms provisions that allow them to hike interest rates "at any time" and "for any reason."
Look for language discussing the issuer's ability to change the terms of its agreement with you. Because the "any time, for any reason" wording is so prevalent, it may be hard to avoid.
But if all else is equal, go for the card that spells out the reasons rates and fees can be raised without writt (more)...
A low interest rate. No annual fee. Sounds like a great credit card, right?
Not necessarily.
While those are still the most important factors to consider, credit card issuers have been busy changing other terms and conditions that can make their cards much more expensive than you expected.
Here are seven things you want to see -- or in some cases, don't want to see -- from any credit card:
1. No universal default clause.
You may be religious about making your credit card payments on time, but one late payment on your cable bill or unpaid DVD club account and your card company may double or triple your interest rate without notice.
In fact, anything that lowers your credit score -- a bounced check, late payment to any creditor, or appearing to take on too much debt -- can be an excuse for the credit card company to zap you into universal default.
Check the card's terms and conditions for the default rate (usually under "Other APRs") and anything that mentions changes in your interest rate. Look elsewhere if you see wording similar to this: "If cardholder is reported as delinquent on an account with any other creditor, we may increase the APRs on your account up to the maximum default APR."
2. Limited change-in-terms provisions.
Most major issuers deny that they have universal default clauses, but they sneak around it with change-in-terms provisions that allow them to hike interest rates "at any time" and "for any reason."
Look for language discussing the issuer's ability to change the terms of its agreement with you. Because the "any time, for any reason" wording is so prevalent, it may be hard to avoid.
But if all else is equal, go for the card that spells out the reasons rates and fees can be raised without writt (more)...