Monday, September 18, 2006
Interest Rate on Your Credit Card
Many people neglect to read the fine print in black and white when applying for credit cards. Even after they are approved, many people also neglect to carefully read their statements. This could take to disaster, as many credit card companies set clauses in the contracts which let them to raise your interest charge per unit for many different reasons.Most people are under the false assumption that credit card companies will only raise interest rates when you are late making your payments. This is far from the truth. The industry is one of the most profitable in the world. As the minimum monthly payments are increased, this will insure that the credit card industry earns billions of dollars each year. The new bankruptcy law making it harder for people to get out of financial trouble will insure that the losses suffered by the credit card companies will be greatly reduced.
Save Your Credit Report Many credit card companies will look at your credit report for any negative information. If they find it the interest rate on your credit card will be increased. You will probably not notice. The first thing you want to do is call your credit card company and demand that the interest rate be lowered if you are making your payments on time. The market is highly competitive. You shouldn't have to stick with a company which raises the interest rate for any reason. It may have errors on it which can cause your interest rate to increase. It is also important to carefully read your credit card statement each month. It is your responsibility to make sure the information on your bill is accurate and correct. Credit card companies are prone to making mistakes.