Top 16 Dirty Secrets To Know When Using Credit Cards

Credit card dirty secrets. Mysterious person holding a credit card.

(7) Hidden or Unexpected Fees Secret

It is one of the highly popular credit card dirty secrets about fees structure. If you planning to use a credit card with no annual fees then don’t forget that credit cards are often having several types of hidden or unexpected fees too.

Some of the hidden cost of using a card include late fees, over-credit-limit fees, lost card replacement fees, transaction fees, and finance charges (interest on outstanding credit card balances), etc.

You should always pay attention to repay your card debt on time to avoid such penalties or special fees.

[Read Also: Understanding Best Payment Methods: Cash, Debit, or Credit]

(8) Surprise Rate Increase Secret

It is one of the most annoying credit card dirty secrets about repayment process. Sometimes, you get delayed in credit card repayment process even for a single day. It gives a valuable chance to your card issuer to raise your Annual Percent Rate (APR) automatically. Your massive default APR may increase up to 25-35%.

It is referred as “Universal Default Clause” that protects card issuers from risky folks. However, companies are often misusing this clause to gain advantage of charging higher interest even from less risky individuals.

(9) Minimum Notice Rate Changes Secret

It is one of the very important credit card dirty secrets about entire industry. According to a hidden clause within the contract, credit card companies can change your interest rate anytime, for any reason, as long as credit card holder is given 15 days notice.

You should read carefully each & every mail that is sent to you by your plastic card company. You should also be ready to take necessary steps to pay off your debt whenever needed.

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