Watch Out for Hidden Credit Card Charges

The modifications to the Credit CARD regulation were designed to give protection to consumers against unjust methods by some credit card issuers, but regardless of the additional conditions, the reality still stays that consumers are not totally protected.

no hidden credit card chargesFor example, although it imposes restrictions on interest rate increases, it does not completely prevent issuers from imposing increases.  Furthermore, there is still no cap, which means an issuer can still impose ballooning rates as long as they provide the 45-day advance notice.

What about the charges?  Some credit cards may offer a low rate to attract new customers, but upon closer inspection you might discover lots of hidden credit card charges that are not so minimal at all.  But, what can you do about it?  If you will not read the fine print, you might discover later on that you are stuck with a card that imposes hidden or unexplained charges.

Therefore, before you sign up for a credit card, consider the following reminders:

Watch out for teaser rates!

Introductory rates can be misleading, especially for first time cardholders.  It is very easy to be attracted to the low-rate or zero-rate offer without realizing the consequences of your choice.  While a credit card with 0% APR might seem like a wonderful deal, keep in mind that you will not enjoy the zero rate forever.  How long will the zero interest rate last?  The answer depends on the type of card you choose.  What happens when then introductory period ends?  How much will the regular rate be?  Again, the answer to these questions will depend on your card choice.

Watch out for high fees!

The low rate can be enticing but what about the fees? To make up for the initial low rate, some issuers may impose higher fees.  One wrong move and you could be subjected to pay expensive penalties. For example, if you fail to submit your payment on or before the due date, you might incur a high penalty fee.  The moment you exceed your credit limit, you could be penalized big  time with charges! Hence, it’s also important to scrutinize all the fees associated with the card before signing up.

 

Watch out for balance transfer fees!

If you are looking for a balance transfer card with a low interest rate, don’t forget to check out the fees.  How much will it cost you each time you transfer a balance?  Some cards may offer a zero interest rate, but you could be spending a lot on the fees; especially if you need to transfer balances from different cards.  The balance transfer cost may depend on how much you are transferring , which means you could be charged by as much as 5% or higher in fees alone.

 

Unexpected rate increase.

Some credit cards that offer incredibly low interest may try to be sneaky by imposing rate increases without notice.  Sometimes, the little charges may be added to your bill so they become virtually unnoticeable.  If you own a credit card, it’s a good idea to review the terms and conditions every once in awhile so you’ll know what you are being charged for.

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.

We will be happy to hear your thoughts

Leave a reply

NHBS Inc © 2024

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

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

Business Loans

Consumer Loans

New Horizon
Logo
Enable registration in settings - general