More Sneaky Credit Card Company Tricks
Credit card companies are getting sneakier than ever in their attempts to squeeze every last dollar out of consumers – but you don’t have to fall for it.
You do need to remain vigilant these days to catch credit card companies when they try to pull a fast one, however.
Many credit card companies, for instance, are lowering credit card spending limits, even for customers with great credit and great payment histories.
Why is this bad?
Because if you charge too much and get close to your credit limit, this hurts your credit score.
Let’s say that your credit card company promised you a $10,000 credit limit. You charged $3000. That is not a problem for your credit score; it is recommended that you charge no more than 30 percent of your credit limit.
But then, let’s say your credit company suddenly slashes your credit limit to $3100. You have now charged almost the maximum amount of your credit limit.
This will send your credit score plummeting, through no fault of your own.
And furthermore – OTHER credit card companies or lending institutions may suddenly raise your interest rate and charge you more every month, because your credit score dropped! That’s another sneaky trick they’re pulling these days.
They also may change your credit payment cycle and make it shorter – it’s never changed in your favor! So instead of 31 days you may have 28 days to pay off your bill. This increases the chance that you will pay late, so they can then hit you with huge fees and jack up your interest rates.
You need to read all mail from your credit card company immediately and read through it thoroughly, because they are required to notify you when they make changes.
If you have been a good customer and have always paid on time, try to negotiate with them. And if they refuse to cooperate, it is most likely time to seek out another credit card company.