Investment & Financial Articles
Title: Credit Card Companies Are Out for Your Money
Author: Christine Breen
Article:
You're probably thinking "Tell me something I don't know" but in
this time of low interest rates you might be thinking that
you've got a great deal since credit card interest rates are
low. Wrong. Credit card companies have a cutoff as to how low
their interest rates will go. So when interest rates are low for
lending, that doesn't mean your credit card rate will be low as
well. If you don't know, or aren't sure, if your credit card
company has a minimum interest rate just look at the fine print
on your next credit card bill. If you can't read that small of
print, and most of us can't, give the customer service a call.
If your credit card company does have a minimum interest rate
then I'd plan to look around and go with the credit card
companies that don't. Because when the interst rates drop, you
should get a break on your credit card rate.
The fixed rate on credit cards actually rose in the last twelve
months. Why? Because the credit card companies have been
actually losing money due to record numbers of delinquencies and
bankruptcies. Those who can't pay now for their purchases in the
past are sticking their bill to the rest of the credit card
holders.
So you may think that you want to get that credit card insurance
being pushed by credit card companies that will pay your bill if
you become disabled or unemployed. Not so fast. The average
payout on a credit insurance policy is 30-50%. The National
Association of Insurance Commissions actually recommends a
payout of at least 60%. Payouts for debt cancellation and debt
suspension is in the 1-3% range. That's definitely not worth the
premiums. Get enough regular life insurance and disability
insurance to cover your debt as their premiums are much cheaper
and have greater payouts.
Beware of a credit card company trick that I recently ran into.
I mailed a payment a week early but yet was still charged a late
fee. Impossible I say. I found out the payment had to be in the
credit card company's processing center by a certain time on the
due date. Think of my credit card payment making it's way
through the mail, to a P.O. box, then getting picked up, sorted,
sent to the processing center, opened and recorded. And this has
to be done by a certain date on the due date. Ouch. I suggest
mailing in your payment at least two weeks early.
About the author:
Christine Breen is the owner of www.1stop-creditcards.com a site
devoted to educating consumers and helping them find a better
credit card.
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