Little Known Facts about Credit Cards
Living without a credit card has become a near impossible task for people these days. Online usage of credit cards has gained momentum in the past few years. However, credit cards can turn out to be a boon or a bane for you. It depends on how you handle your personal finances. The article "12 Little Known Facts Every Cardholder Should Know" at The Free Geek gives 12 interesting (but little known) facts that every credit card holder must know.
Most of us hardly knows about the Universal Default clause, which could hurt us badly. If you make a late payment, the credit companies will consider it as your inability to handle personal finances. This practice is considered as the Universal Default clause. Under this clause, banks can raise your interest rates when they feel that you’re a high risk for defaulting on any debt.
Are you aware of the FICO score? If you FICO score is less than 600, you may not be able to increase your credit line. Also, there is a risk that you will be relegated to a category known as "People with Bad Credit." This score will determine your future transactions and interest rate. Hence, you must know about it in details. The article gives many such important points that you must remember while managing your personal finances. This is a must read for every credit card holder.