How to be Careful with your Credit Cards
Although Americans have less credit card debt now than they did a year ago, there are still ways credit card companies can add on additional fees to your account that you must be on the look out for.
This month we are going to provide our readers with some tips as seen on NBC Today’s Show during an interview with Greg Daugherty, the editor for Consumer Reports and Jean Chatzky, on how to avoid tricks that credit card companies will use on consumers to add extra and unnecessary fees.
Today, consumers are complaining more about credit cards than almost any other type of service. This could be in part because credit cards are one of the only financial services in today’s economy that still have rising interest rates and rising annual fees). Credit card companies lost an enormous amount of money because of their inability to charge overdraft fees unless consumers told the credit card companies that they were opting in(agreeing to the service).
This adds up to a loss of approximately 38 billion dollars ($38,000,000,000) in revenue each year for credit card companies. In addition, the Card Act prevents credit card companies from raising the interest rate on an existing balance.
Ways to avoid being charged extra by your credit card company!
- Check your mail, rates, and fees
- Be wary of new card promotions
- Weigh the value of rewards for cards that offer rewards
- Restructure your debt and spend wisely
As the holidays approach, try to have the money available before you make big purchases so you don’t incur credit card debt!
In order to recoup their loses, the credit card companies have reinstated their annual fees which had disappeared prior to the Card Act. Another tactic that credit card companies have used is instead of offering fixed rate cards like they used to, they now offer variable rate credit cards. This means that at any time the interest rate on your card can rise instead of staying at the lower rate you agreed to when signed up for the card.