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Beware! Credit Card Penalties Attack!
Having a credit card in your wallet is considered to be a great convenience and even a privilege. Numerous credit card ads are screaming with numerous advantages of being a credit card holder. But, actually, managing credit cards is easy and convenient mostly in theory. When it comes to practice, credit consumers face a lot of problems and difficult situations.
Let's take penalties, for instance. Late payment fees, default rates, over-the-limit fee and other penalty charges lie in wait for borrowers on every corner. And in some unpredictable situations it is really hard to do everything right and on time with your plastics. Your every misstep in managing your credit cards can cost you money.
Late payment fee does not necessarily mean that you are irresponsible credit card holder. Lenders themselves often initiate your financial blunders. So what do they do to help you get a penalty fee? More and more credit issuers cut down the length of credit card grace periods. Grace period used to last 30 days. These days, if you get lucky, you will qualify for a credit card with a 25-days-long grace period. Most plastics now come with a grace period that lasts 20 days. Or, 10 days, or even none in the worst-case scenario.
Of course, this information is not that aggressively advertised, to put it mildly. It can scare away the customers. Changing the statement closing date without a notification is also one of the credit companies' favorite moves that trigger penalty fees. So, how can you fight abusive credit companies practices and train yourself to be a disciplined card holder in order to avoid penalty fees and keep your credit score from damage?
Credit card payments deadlines are something you are to know as you know your ten fingers. Leave notes, set reminders, mark your credit cards due dates in your calendar or in your pocket planner. If you are used to make credit card payments by mail, try to pay bills within one or two days after you received a statement. If you choose making online payments, remember that an electronic transaction also takes some time. So make sure your lender will get the payment on time.
However, you have a back-up plan. In case you realize you will not make it on time, contact your credit company and let them know you are experiencing financial problems. You have a chance that your issuer will shift your due date. So you will have a few days to settle your problems and pay your bills.
If you have a good reputation as a credit card user, you are likely to avoid credit card penalties. If you generally make your payments on time, if you do not go over your credit limit and your credit allows you to qualify for best credit cards, your lender can make concessions for you. Communication is the key to solving problems, financial as well.
Just contact your lender and try to explain your situation. Being polite but persistent will help you to change your due dates, waive some penalty fee or even negotiate better terms.
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We are used to see credit cards the way they look today, and it is hard to imagine that they looked different and served for another purpose than paying for goods and services. We call them plastics. In fact, a century ago credit cards had a different shape, size and were not made of plastic.
The appearance of credit cards dates back to the beginning of the XX century. Who were they created for? The target audience was wealthy people. The cards could be used as business certificates and licenses for the so-called "loyalty programs" at some restaurants, gas stations and merchants. Those cards, you can be surprised, were made of cardboard.
Rapidly growing credit card crime rate causes more and more concern of credit consumers and credit providers as well. Credit card fraud is a number one card holders complaint to Federal Trade Commission. According to the statistics, over 85% of credit card owners that fell victims to credit scam discover the fraud only after they get turned down by credit issuers, having applied for a new credit card or loan.
Credit bureaus cannot stay indifferent to the problem of credit fraud and identity theft, in particular. Equifax, one of the three US major credit bureaus has introduced a new ID theft protection service. "ID Patrol" is a multifunctional tool that allows protecting customers from identity theft.
You can find hundreds of e-articles and tips on reasonable credit card spending and staying away from debts. After you read them, it seems that it is pretty easy to stick to several rules of rational credit card use. But when you try to put theory into practice, it turns out to be much harder than it seemed.
Even if you do your best and manage to live within your financial means and spend the amount of money on your credit card that you can afford to pay off, you cannot be protected from unexpected situations in life and some external factors. Now that the US economy is experiencing a slowdown, it is high time to do the impossible and take control over you spending habits.
People got so much used to comfort, to living in apartments and houses with all conveniences. Can you imagine living without water, gas or electricity? Like cavemen. Me neither. However, utility bills are among the most avid money eaters on your expenditure list. But most people just make a helpless gesture looking at their monthly credit card statement. That's the way the cookie crumbles.
Actually you can make the cookie rumble the way you need it. You just need to make some efforts and get used to saving on utilities. Keep on reading and you will find several tips on how to reduce your utility bills and cut down your monthly credit card payments.
