Oct
27
2010

Know Your Credit Card

When you apply for a credit card, a request that a sign is a legally binding contract establishing the terms of the agreement between you and the bank, as the interest rate and how its calculated, the grace period, if there is annual fee, etc. While we must accept the terms and sign if you want the credit card and while the lender will undoubtedly lead out the terms, the lender does not feel similarly committed. Lenders like to constantly change the terms, effectively changing the offer after it was made. This is one of the few industries that can be charged more than originally agreed to pay. One of the main reasons they are doing this is because they are constantly checking your credit score, looking for an excuse to raise rates and therefore their income. So even if you never have fallen behind in payments to any bank or utility, your credit score may increase as it is approaching its limit credit. Or you might have missed a payment or lose their job. Lenders have any number of excuses for their actions.

Lenders also have customers do not read the inserts of small full of legal jargon slide your email account or separately, at least until it is too late. Apparently, the vast major never cardholders to look at these amendments. Theuer also hope that most of us are ignorant of our rights to credit card. Not all changes in credit card agreements are necessarily bad for you, but rarely find one being done in their interest.

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