Dirty Credit Card Tricks
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7 'Games' Companies Play
Personal Finance experts, Ken & Daria Dolan, have found most credit card companies are downright ingenious when it comes to cooking up sneaky new credit card fees and dirty tricks to take more money from you.
Click through our gallery as the Dolans reveal seven of these tricks to look out for and, of course, avoid.
Next: Dirty Trick No. 1 -
Dirty Trick No. 1:
Say "Bye-Bye" to Your Grace Period
No grace period means that you’ll start accruing interest the moment you charge something and that can cost you a bundle of “extra” interest. Most credit card issuers have already reduced their grace period from 25 days to 20 days. Many others have eliminated the grace period altogether. Now they are coming up with more and more reasons to take away your grace period. Miss a payment? Stop carrying a balance? Bye-bye grace period!
Next: Dirty Trick No. 2 -
Dirty Trick No. 2:
Punishing You for Being Smart
These fees are the lowest of the low because they penalize you for being a responsible credit card user. Some of the biggest offenders include charging you a fee for:
· Closing your account
· Failing to use a card for a period of time (such as six months or a year)
· Not carrying a balance
· Every transaction each and every time that you use your card
If your card charges you any of these fees, it's time to look for a new card!
Next: Dirty Trick No. 3 -
Dirty Trick No. 3:
Sending "Convenience" Checks
Credit cards often send you "convenience" checks so that you can write checks against your credit card account. Isn't that nice of them? Please! DON'T do us any "favors"! What they bury in the fine print is that these checks usually carry a very high interest and fees -- even higher than regular credit card charges. Some cards also give you no grace period on convenience checks, so you start paying interest from the day you write the check! Shred these little "gifts" whenever they arrive.
Next: Dirty Trick No. 4 -
Dirty Trick No. 4:
Inviting You to Skip a Payment
In their infinite generosity (ha!), some cards will "invite" you to skip a payment. This "helpful" offer, which sounds great at first blush, often comes after the holidays when your balance is big and your wallet is stretched. DON'T DO IT! Skipping that payment can lead to a host of trouble from a higher interest rate to possibly having to make extra payments in the future. Are you starting to notice a pattern?! You should be skeptical whenever your credit card company does something "nice" for you without you asking for it!
Next: Dirty Trick No. 5 -
Dirty Trick No. 5:
Lowering Your Minimum Payment
Another way some cards try to jack up their profits and lure you deeper into debt is by lowering the minimum payment due on your balance. It used to be cards required a minimum monthly payment of about 4% of your balance, but many now require as little at 2%. Don't fall for it! Going from a $40 payment to a $25 payment on a $2,500 balance means it will take you an extra 19 months to pay off your balance!
Next: Dirty Trick No. 6 -
Dirty Trick No. 6:
Tricky Timing
We all know that our payment is due on a certain date or it's late, right? But a new twist being thrown into the mix is having your payment due by a certain time on the due date. If your payment is due at noon, and gets processed at 12:01, you get socked with a late fee AND likely a higher interest rate. Gimme a break! Carefully check your statement so you avoid this trap.
Next: Dirty Trick No. 7 -
Dirty Trick No. 7:
"Over the Limit" Fees
Credit cards charge you a hefty fee for going over your credit limit. Look, we don't have a problem with penalties for that. But now these fees have gotten excessive -- almost $40! Plus, credit card issuers don't exactly discourage you from going over your limit when they approve charges and balance transfers that put you over your max.
Next: Before You Sign ... -
Jamie Koslow, AOL
Dolan's Smart Credit Moves
Now you know how to avoid these 7 traps, but credit card companies will keep dreaming up new ones. So:
Don't sign on with a card until you have a list in writing of all fees that the company charges. You can find these in the small-print section of your application. Or, if you apply online, you will have to agree to all of the terms and conditions as part of your sign up process. You can always call the company, too.
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Ken & Darian Dolan
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Recent Comments
Gastonmb 07:31:31 AM May 13 2008
the hell with all credit cards i don't care who they are rob you blind and then stick it to you.an our goverment let's them do it.and for all those who say well you shouldn't have gotten one you probaly work for those loan sharks!
Oceanlover58 06:31:53 AM May 13 2008
I am hoping that it's the what comes around, goes around thing happening to credit card companies now. Sooner or later, it was bound to come back at them.
Just because you file bankruptcy and include credit cards...doesn't mean you are out of the dark yet. New bankruptcy laws have made it MORE difficult for the consumer. You still may be required to pay the creditor some of the money back over a period of years to the TRUSTEE of the courts.
The Bankrupcty Courts and Trustee are NOT on your side, they're on the side of the banks and creditors,etc.
It happened to us. After a motorcycle accident that my husband and I were in, and doctor appts. and surgeries, etc, we lost hours in work and soon were not able to work due to not being able to do our jobs like we used to before the accident. We were not able to keep up the mortgage payments,etc. The mortgage company ~ Chase, refused to work with us and said Foreclosure is what they were going to do. To keep that from happening, we were for
Duddly42 01:35:51 AM May 13 2008
Poor economics to use credit cards...makes no sense. Save your money and just buy the stuff.
Duddly42 01:34:17 AM May 13 2008
I'm done with credit cards also, they are not hurting me any if I don't use them! For a long time I felt like credit cards were handy and I needed them around, back when they treated me fairly and gave grace periods, when I needed to get a set of tires for my car and could get them right away. Now, I can't wait to get rid of the last card I have which has a $2000.00 balance on it. If they piss off enough people, and I'm sure they have, then maybe everyone will get wise and get rid of them or file there bankruptcies if they have to and get rid of them that way.
Get bent credit card companies, and no thanks to you that I'm living a very low stress life now, have been for several years now. Also, I have more money now then I did then because it's not going to those Bloodsuckers, and not wasted on interest and late fees
Duddly42 01:34:14 AM May 13 2008
I'm done with credit cards also, they are not hurting me any if I don't use them! For a long time I felt like credit cards were handy and I needed them around, back when they treated me fairly and gave grace periods, when I needed to get a set of tires for my car and could get them right away. Now, I can't wait to get rid of the last card I have which has a $2000.00 balance on it. If they piss off enough people, and I'm sure they have, then maybe everyone will get wise and get rid of them or file there bankruptcies if they have to and get rid of them that way.
Get bent credit card companies, and no thanks to you that I'm living a very low stress life now, have been for several years now. Also, I have more money now then I did then because it's not going to those Bloodsuckers, and not wasted on interest and late fees
Jamcarr3 12:43:50 AM May 13 2008
ADD TO THIS THE CREDIT LIFE INSURANCE THEY SELL THAT DOESNT PAY HAVE BEEN DOWN THIS ROAD MY WIFE AND I HAD CREDIT LIFE ON ALL CARDS WHEN SHE PASSED ALL COMPANIES WERE NOTIFIED AND SUPPLIED WITH DEATH CERTIFICATES ITS NOW OVER 2AND HALF YEARS AND MOST HAVE NOT PAID AS I CANNOT AFFORD ATTORNEY AS HER CANCER CARE TOOK ALL OUR SAVINGS I HAVE NOTIFIED FLORIDA ATTORNEY GENERALS OFFICE AND BANKING COMMISION ABOUT THESE COMPANIES PRACTICES BEING THAT THEY ALL USE SAME PO BOX IN HOLLYWOOD FLORIDA. ONE OF THE CARD COMPANIES EVEN CALLED AND ASKED FOR MY WIFE KNOWING SHE HAD PASSED AND I AM STILL GREVING TOLD THE IDIOT TO TELL ME WHERE HE WAS AS I WOULD LIKE TO MEET HIM AND BEAT THE HELL OUT OF HIM FOUND COMPANY SEEMS HE QUIT JOB.
Pevchamp 04:40:10 PM May 12 2008
dirty ...is putting it mildly..........you wait they will have to pay !!!!!!!!!!!
OWWSETTON 11:15:57 AM May 12 2008
i love credit cards.... i use them to buy everything, then pay the bill online!....why?...i get so many reward points! I use them for everything from gas to tvs.... but dont spend what you aint got....... my goal has always been to pay no late fees, no over credit limit fees and no finance charges.... it is free rewards that is taken from a piece of the 3 % they charge the merchant! and another great thing about my system is my credit score is through the roof!
IMBACKLEONA3 10:14:04 AM May 12 2008
if you just have to use credit cards use prepaycards you load them up go play use all the little ducks dump the card.
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