The Issue of Hidden Credit Card Costs and You

We cannot discount the fact that credit cards have become an essential part of our daily lives. We rely on our card accounts when purchasing basic commodities, such as food and clothing; when covering our transportation and travel expenses, most especially when buying airline tickets or reserving hotel rooms; and for other related purposes. Many people are unaware of the hidden costs associated with credit card use.

However, overuse of credit cards pushed a lot of people into debt traps. In fact, according to the studies conducted by the Government Accountability Office, or GAO, uncontrolled spending is one of the top reasons why consumers incurred huge financial obligations, whereas payment delinquency is a close second.

It was also discovered by the same agency that more and more credit card firms nowadays use confusing terminologies in their terms and conditions, which often mislead consumers. Truth is even international brands, like Citibank, Discover, Chase Bank USA, Bank of America, MBNA America and Capital One Bank, are guilty of such charge.  So how can you avoid being misled into paying steep hidden credit card costs and charges?

 

Misleading Credit Card Conditions

Credit card companies are required by the law to disclose all fees in their credit card agreement. However, some statements may be vague or misleading. Add to this, the Terms & Conditions are often written in very fine print making them difficult to read. But if you won’t spend time reviewing your contract, you could end up with a card that imposes unreasonable rates.

If some terminologies or phrases are unclear, don’t hesitate to call the credit card company and ask for a detailed explanation. As a consumer, it is your right to understand everything associated with your credit card.


Using a Credit Card to Your Advantage

Aside from misleading conditions, it has been found that many credit card issuers today impose unreasonable rates and fees. If you take a look at credit cards in the market, most use the variable rate system of calculation. As a result, many cardholders have found themselves stuck in bad credit and the number is expected to increase in the coming years.

As a consumer, it is your duty to research for a credit card that would serve you best. Don’t just rely on what the ads tell you. Use your senses. Research. Investigate. Inquire. Compare. Only by doing these steps can you find a credit card with reasonable terms.

Finally, upon finding the right credit card, keep your lifestyle simple and think ten times before you using your credit card. Owning a credit card should be taken as a serious responsibility. Failing to keep up with your responsibilities as a credit card holder could lead to debt and financial trouble.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

7 Comments
  1. Are there any hidden fees with debit cards like there are with credit cards ; example : credit cards cost 16% per each purchase you make – what about debit cards? Don’t you just pay a certain amount – and if a service says they take debit cards like say net zero how do I send it to them?

  2. I think you say absolutely right that the credit card now become an important part of our life. We use it on the daily basis and people are not aware of the hidden cost after the payment late. This post create awareness for lots of people to control this cost for different prospective.

  3. According to the Government Accountability Office (GAO), a lot of credit card holders do not realize that occasional misses or delays with their credit card payments can cost them extra bucks on interest rate and penalty charges.

  4. ‘m not gonna pay to read news…..I’ll either find it somewhere free or just not bother. The bbc will stay free right? It’s getting it’s money from our license fee’s so we’re already paying for it effectively.

  5. If you still can’t find the best solution for your credit card debt or other debts, I suggest that you get a One Hour Payday loan. This is the fastest way, but you should be able to manage it before you get it. Good luck.

  6. In the debit cards that I have, they don’t have any charges in every purchase that I have. It makes me really happy because I don’t need to bring my money or any checks just to use it as a payment. It is very handy and more safe.

  7. No credit card is best or rather every card is best if you are alert and repay the amount borrowed on time. Hence as you are a new starter so be careful and always pay back on time and this will surely increase your credit score. Now for good credit cards it differs some have 0% APR for the first year some give rewards and cash back on some purchase so you have to choose which suits you the best.

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NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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