5 More Tricks – Credit Card Companies Use to Cheat

Earlier we have read four tips by which companies cheat their credit card consumers but they were just a tip of iceberg. Card companies developed some new methods as follow:

#1 Increasing Interest Rate
It is true you have signed a document for lower interest credit card but not at all. Credit card companies use to watch your credit score. If they found you did not pay your loan amount on time from some another account they can use this reason to increase your interest rates. It does not matter that you are a good credit card consumer with good financial habits as it is a big benefit for credit card companies.

#2 They can raise interest rates
Of course they can do this with your permission. You have not read carefully terms & conditions where company clearly mentions it can amend interest rates and other fees without giving an appropriate reason and you signed it too. Thus they are free to increase any fee at any time whenever they want, if you have objection you have only one alternate i.e. to change your credit card immediately.

#3 Free offers
There is nothing free in the world. While we are paying for living in a home, drinking clean water, eating food and to moving free, how we can expect to receive free offers with credit cards. Surely credit card companies introduce attractive schemes in every couple of months having some hidden charges or conditions to avail them. You may not be aware of them still they are imposed to peoples. You may have to pay in terms of increased credit limit (a trap to have more debt), a new fee or an extra charge as little as US$5 per month.

#4 Abroad fee
This fee is applicable for people purchase outside the United States from their credit card as many peoples do. You travel to other countries, do shopping, pay from your credit card assuming that you will be charged normal fee yet it is not correct. When you pay through credit card outside of national borders, you will be charged 1 percent currency exchange fee along with other charges known as charges for charging abroad.

#5 Shorter grace period
Grace period is known the time between you receive your bill statement to due date to pay your credits. Earlier this time was up to 40 days since now-a-days most companies are shrinking it to 20 days only as prescribed in states law.