Credit Card Debt, what to know.

What to know about credit card debt

The following items are not widely known about credit cards:

• If your credit card uses different rates for purchases, transfers, and cash advances, realize that the card issuer may pay the lower interest rate balance first. What this may means is, if you carry a balance, your high-rate cash advance may not be paid until all lower-rate balances are paid in full first.
• Fixed-Rate credit cards are usually not fixed forever. Rates can be changed at any time, as long as the card issuer provides 15 days advance notice of the change in terms. Sometimes the fees may also increase. These Change in Terms notices are usually included with your monthly statement so be aware of them.
• Your interest rate may dramatically increase if you ever make late payments on your credit card bill.
• Your credit cards may also raise your interest rate after conducting a routine credit report review on you. If your overall credit history has deteriorated, the issuer may at times raise your interest rate even though you've never made a late payment on the card that you have with them.
• The 25 day grace period only applies when you pay-off your entire balance due each month. If you only pay the minimum payment, interest is immediately accrued from the moment you charge something to your credit card. Some companies are even thinking of shortening the grace period to 20 days, and some cards now have no grace period at all.
• You should ignore offers to reduce or skip payments. These options are frequently offered over holiday time. So when you skip a payment the loan that you may have will continue to accrue interest; therefore, these offers simply increase the overall interest and finance charges that the creditor collects. Also beware of offers of no payment/no interest for X amount of months. Furniture stores, jewelry stores, and electronics stores frequently offer these programs. This can be a good offer, but you should read the fine print. Make sure you know the details of the program. Generally, you need to pay off the entire balance before the end of the "free" period to receive the benefit. Otherwise, you will probably have to pay interest on the entire balance from the date of your purchase if it is not paid off.

Click here to read about our alliances

Debt Consolidation / About Us / FREE Debt Relief Quote
Contact Us / Education / FAQ / NewsLetter / Privacy / Site Map

Copyright© 1991-2006 By Kimberly Credit. Kimberly Credit is a registered trademark of Kimberly Credit, Inc. Unauthorized use is strictly prohibited. The information set forth in this website shall serve as information purposes only and is filed  with the United States Copyright Office.

• Cut Payments up to 70%
• Make One Low Monthly Payment
• Fast one hour approval
• Elimination of past-due collection calls
• Account re-aging