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Scary little credit card secrets
Grace periods for some cards are reduced from the original promise of 30 days to 20 days or none at all. Interest is then charged from the day a purchase is made until payment of the bill. Awareness of grace period is crucial.
Interest is charged on cash advances from the moment the cash is dispensed and the rates can climb to 30 percent. Using credit card at an ATM is a lot more expensive than debit card.
Late payment fee is an average of $28.58, for even a day late. Find out about yours for a nasty surprise.
There are two billing cycles, first there will be an interest charge on your purchases and then for the month before. The most favorable balance method is the adjusted balance where interest is charged after payments and credits during the billing cycle.
A single late payment can raise your interest rate from 12 to 20 percent if not more.
Companies have a policy of changing interest rates with notice only 15 days in advance. Even fixed rates can change interest at any time.
Minimum payments are lowered constantly and the increasing interest charges on your card balance is never paid off completely by minimum payments alone. Credit card companies make the most profit if you make the lowest possible payment ensuring your debt remains. Credit card info.com reports:
Grace periods: Some cards have reduced grace periods from the original 30 days to 20 days or no grace period at all. With no grace period, you are charged interest on the purchase from the day you make it until the bill is paid. Knowing your grace period can save you money.
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