Credit Card Tricks That Keep You In Debt, Part 2

If you arrived on this page without reading Part 1, then click here for Part 1 of Credit Card Tricks

The other day, I went over one of the tricks used by credit card companies to extract more money out of your checking account.

They'll do anything to kill your dreams of getting out of debt and achieving financial abundance.

"The only man who sticks closer to you in
adversity than a friend is a creditor."
- Unknown
Today, let's go over a couple more.

Credit Card Trick
Seasoning the Mail
First of all, many credit cards today are adding a time your payment must reach them by on the due date. Let's say your due date is the 15th. You may see on your statement that your payment has to reach them by noon that day.

If your payment reaches them at 1PM on the 15th, you're late even though, technically, you got it there on the due date. Nice, huh?

The real kicker, though, is how some credit card companies "season" their mail. They sometimes let your envelope with your payment in it sit in the mail room for a couple days before they get around to opening it.

For this reason, be sure to send your bill in a good week in advance, 10 days early would be better.

Credit Card Trick
Raising Your Rate
Be aware that credit card companies are looking for any chance to raise your interest rate.

If you're late with your payment, they can take that as an excuse to hike your rate. If you've never been late before, many companies will credit the late fee back. But, many will still raise your rate even after the credit.

A cash advance can be dangerous, also. Usually the cash advance rate is higher than your normal interest rate. Your future payments will be applied to your lower rate first so the money you borrowed at the high rate sits there forever costing you more money.

If you haven't read the fine print, some credit cards will hike your entire balance up to the cash advance rate as soon as you do the advance. Be careful!

Another interest rate credit card trick is to raise your rate because they saw you were late on another credit card. Yes, they check your credit report periodically trying to find a slip-up elsewhere that they can take advantage of.

Did you know that your credit cards can raise your rate just because they feel like it? Yep, go read all that fine print in the agreement. It's in there.

Bottom line? I think it's in your best interest to get serious about paying off your credit cards, building an emergency fund, and stop carrying these balances.

Then, you won't care how many credit card tricks they come up with, will you? ;-)

"He looks the whole world in the face
for he owes not any man."
- Henry Wadsworth Longfellow
Change your life,

Matt


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