6 Credit Card Secrets That Banks DON’T Tell You!
Banks can be very sneaky corporations sometimes. The fact is they have a lot of secrets that they count on you not knowing about. That is how they make the majority of their money. It would take a long time to go over every secret that banks have but here are some secrets about credit cards that they very much count on you not being aware of.
1. Interest From Day #1
Most card issuers charge interest from the day a charge is posted to your
account if you don’t pay in full monthly. But, some charge interest from the
date of purchase, days before they have even paid the store on your behalf!
REMEDY: Find another card issuer, or always pay your bill in full by the due date.
2. Two-Cycle Billing
Issuers which use this method of calculating interest, charge two months worth
of interest for the first month you failed to pay off your total balance in
full. This issue arises only when you switch from paying in full to carrying a
balance from month to month.
REMEDY: Switch issuers or always pay your balance in full.
3. The Right To Setoff
If you have money on deposit at a bank, and also have your credit card there,
you may have signed an agreement when you opened the deposit account which
permits the bank to take those funds if you become delinquent on your credit
card.
REMEDY: Bank at separate institutions, or avoid delinquencies.
4. Fees Are Negotiable
You may be paying up to $50 a year or more as an annual fee on your credit card.
You may also be subject to finance charges of over 18%.
REMEDY: If you are a good customer, the bank may be willing to drop the
annual fee, and reduce the interest rate. You only have to ask! Otherwise, you
can switch issuers to a lower- priced card.
5. Interest Rate Hikes Are Retroactive
If you sign up for a credit card with a low rate, such as 7.9%, when
the low rate period expires, your existing balance will likely be subject to the
regular and substantially higher interest rate.
REMEDY: Pay in full before the rate increase or close the account.
6. Shortened Due Dates
Most card issuers offer a 25 day grace period in which to pay for new purchases
without incurring finance charges. Some banks have shortened the grace period to
20 days but only for customers who pay in full monthly.
These are just a few credit card secrets that banks are counting on you not to know. Hopefully you found these helpful. If you would like to learn even more about how you can streamline the efficiency of your business finances, then you are more than welcome to contact us and we will take a look at your unique situation and offer some sensible solutions that would work best for you!
“TITAN Financial Pros provide an informational service only and are not responsible for any investments made applying this information. The results described are not distinctive and are not guarantees of future income. Any assumption contains risk and is 100% the responsibility of the individual to assess the risks/rewards involved. We bear no liability assumed or implied for your application of the information shared from this content. This information is for educational and entertainment purposes only.”
Is your business losing money?
Click the button below to get our FREE report on the 5 Most Common Ways Businesses Lose Money and more importantly,
HOW YOU CAN FIX THEM!
