6 Credit Card Secrets; Banks dont tell you

Word Count:
423

Summary:
Six Big secrets of credit cards, banks dont want you to know about. Find out, how you can save money...a lots of money :)


Keywords:
credit cards,credit card trap,bank secrets


Article Body:
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<b>1. Interest Backdating</b><br>
Most card issuers charge interest from the day a charge is posted to your 
account if you donąt pay in full monthly. But, some charge interest from the 
date of purchase, days before they have even paid the store on your behalf!<br>
<b>REMEDY:</b> Find another card issuer, or always pay your bill in full by the 
due date.<br>
<br>
<b>2. Two-Cycle Billing</b><br>
Issuers which use this method of calculating interest, charge two months worth 
of interest for the first month you failed to pay off your total balance in 
full. This issue arises only when you switch from paying in full to carrying a 
balance from month to month.<br>
<b>REMEDY</b>: Switch issuers or always pay your balance in full.<br>
<br>
<b>3. The Right To Setoff</b><br>
If you have money on deposit at a bank, and also have your credit card there, 
you may have signed an agreement when you opened the deposit account which 
permits the bank to take those funds if you become delinquent on your credit 
card.<br>
<b>REMEDY</b>: Bank at separate institutions, or avoid delinquencies.<br>
<br>
<b>4. Fees Are Negotiable</b><br>
You may be paying up to $50 a year or more as an annual fee on your credit card. 
You may also be subject to finance charges of over 18%.<br>
<b>REMEDY</b>: If you are a good customer, the bank may be willing to drop the 
annual fee, and reduce the interest rate ‹ you only have to ask! Otherwise, you 
can switch issuers to a lower- priced card.<br>
<br>
<b>5. Interest Rate Hikes Are Retroactive</b><br>
If you sign up for a credit card with a low "teaser" rate, such as 7.9%, when 
the low rate period expires, your existing balance will likely be subject to the 
regular and substantially higher interest rate.<br>
<b>REMEDY</b>: Pay in full before the rate increase or close the account.<br>
<br>
<b>6. Shortened Due Dates</b><br>
Most card issuers offer a 25 day grace period in which to pay for new purchases 
without incurring finance charges. Some banks have shortened the grace period to 
20 days‹but only for customers who pay in full monthly.<br>
<b>REMEDY</b>: Ask to go back to 25 days.<br>
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<p><font face="Verdana" size="1" color="#C0C0C0">SOURCE: MASSACHUSETTS EXECUTIVE 
OFFICE OF CONSUMER AFFAIRS AND BUSINESS REGULATION</font></p>