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Things a credit card user should know
Despite making credit card payments on time, your interest rate may be automatically be raised due to late payments on another credit card, car, phone or house payment, or even if the bank decides your debt is too high. This is known as the universal default clause which is increasingly becoming a standard clause in credit card agreements.
A credit score also known as a FICO score can be widely shared. It influences the amount you can borrow, the amount you pay for life insurance, whether you can rent a home and the interest rate to be paid on a credit card. Find out about your credit score and how it is tracked.
It is entirely upto the credit card company to decide the amount a cardholder is charged for a late payment even if it is only by an hour.
A majority of Americans pay no more than the minimum amount required which can be as low as 2 percent of their balance each month. Doing this can take years to clear your debt apart from ending up paying far more than the actual expenses incurred. Credit card info.com reports:
Even if you make your credit card payments on time, the credit card bank can raise your interest rate automatically if you're late on payments elsewhere -- such as on another credit card or on a phone, car, or house payment -- or simply because the bank feels you have taken on too much debt.
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