Investment & Financial Articles
Title: Six Credit Card Secrets No Bank Wants You To Know
Author: Cornelus Postell
Article:
We all get them from time to time. You know, the sealed envelope
in the mail that have a written message such as "You've Been
Pre-Approved For A New Credit Card From..." If you are like me,
you file them away- usually in the trashcan or shredder!
Throughout many years of receiving those offers however, I've
noticed many loopholes that anyone can use to their advantage.
Weather you already have credit cards or still receiving new
offers the following six secrets are what I learned to follow.
Don't worry, they're easy methods anybody can do! This way you
can lower how many credit cards you carry to one or two.
WHAT TO DO
1. Interest Backdating
THE PROBLEM: The majority of credit card issuers charge interest
starting from the day a charge is posted to your account if you
don't pay in full monthly. However you're being charged interest
starting from the date of purchase before you've even paid the
store!
THE SOLUTION: Look for another card issuer, or better yet, pay
your bill in full by the due date.
2. Two-Cycle Billing
THE PROBLEM: Issuers who use this popular method of calculating
interest charge two months worth of interest for the first month
if you fail to pay off your total balance in full. It's
affecting you whenever you switch from paying in full to
continuously carrying a balance.
THE SOLUTION: You can either switch issuers or continue to pay
your balance in full each month.
3. The Right To Setoff
THE PROBLEM: You have money on deposit at a bank. Plus your
credit card is issued there. You signed an agreement when you
opened the deposit account and it permits the bank to take those
funds if you become delinquent on your credit card.
THE SOLUTION: You can either bank at a separate institution or
avoid delinquencies.
4. Fees Are Negotiable
THE PROBLEM: You're paying up to $50 a year or more as an annual
fee on your credit card. You also are subject to finance charges
of over 18%.
THE SOLUTION: If you're a customer who normally pays on time,
most banks are willing to reduce or drop the annual fee. Plus
reduce the interest rate but only if you ask! Otherwise, you can
switch to a lower- priced card.
5. Interest Rate Hikes Are Retroactive
THE PROBLEM: You signed up for a credit card with a low
introductory rate, such as 1.9%, for six months to a year. After
your time is up, your existing balance is subject to the regular
or sometimes even higher interest rate.
THE SOLUTION: You can either pay your balance in full before the
rate increase or close the account.
6. Shortened Due Dates
THE PROBLEM: Your initial offer included a 25-day grace period
in which to pay for new purchases without incurring finance
charges. However the bank have shortened the grace period to 20
days.
THE SOLUTION: Ask to go back to 25 days. You can do so by
writing your bank explaining why you would rather stay at the
preferred 25-day grace period. If you're refused, then switch to
a different credit card issuer.
These techniques have worked for me time and time again, and I'm
sure they will for you too. I've used them consistently to lower
the quantity of cards I carry to now two. If you follow these
proven techniques this way, not only will you lower your chances
of falling into debt, your monthly bill payments will be a lot
easier and simple.
About the author:
Cornelus Postell has been in the financial industry for several
years and has worked exclusively for several major firms.
Cornelus is also the author of "Money Solutions That Works!" You
can check out his book at http://www.solutionswerks.com/. Don't
forget to sign up for his free training program filled with
uncovered hidden ways to gain financial freedom.
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