News, Credit card companies' evil tricks. (credit cards, payment, financial, interest rate)

[John1960]

Some of the worst offenses: Huge fees exceed card issuers' costs and risks. Interest rates aren't disclosed to card applicants. Rates get jacked up even if you pay just hours late.

Parents spend the first several years of children's lives teaching them how to play fair. By the time we hit elementary school, most of us are pretty good at knowing what's just and what's not.

That sense of fair versus foul, though, tends to get tangled up in the world of credit cards. Some practices that seem egregious at first glance actually make sense when you understand their rationale. Other policies don't hold up so well to scrutiny, even though they're widely accepted in the industry.

Credit card companies' evil tricks - MSN Money

[Prettygyrl777]

People should take control of spending habits instead of blaming credit card companies for their financial woes. Why would someone apply without knowing the interest rate? If they don't read the fine print, then they'll just have to deal with the consequences. It's a choice- you don't have to take it.

[Threestep]

Originally Posted by John1960

Some of the worst offenses: Huge fees exceed card issuers' costs and risks. Interest rates aren't disclosed to card applicants. Rates get jacked up even if you pay just hours late.

Parents spend the first several years of children's lives teaching them how to play fair. By the time we hit elementary school, most of us are pretty good at knowing what's just and what's not.

That sense of fair versus foul, though, tends to get tangled up in the world of credit cards. Some practices that seem egregious at first glance actually make sense when you understand their rationale. Other policies don't hold up so well to scrutiny, even though they're widely accepted in the industry.

Credit card companies' evil tricks - MSN Money

I do not quite understand your exitement.
Disclosures concerning fee schedules and penalties are part of the credit card application. Consumers get notified of changes by mail. Which most people do not bother to read.
Regulators' practices are very strict.
This is business! Cost plus risk does not make profit.
You have to follow the rules. "Just hours late" is simply not on time.
Noone forces you to use a card. This is a choice open to consumers. Not educating yourself about responsibilities you take on while using an open-ended line of credit ... What would you call that?

[GreenMachine]

Tips for making credit cards work for you:

1) Make them send you paper statements.

2) Pay the bill as soon as you get it or else schedule the payment in your online banking for payment on the day it is due.

3) Never carry a balance.

4) If you do carry a balance for one month, use a second credit card so that you do not incur any interest on anything you purchase in the meantime. (As soon as you start to carry a balance, you pay interest!)

5) Use credit cards that off frequent flier miles or cash rewards.

6) When you stop using a credit card, keep the account open, so it gives you a higher credit score.

7) Use credit cards instead of debit cars. It's cheaper and if you have an issue with a vendor, you can dispute the charges through the credit card company.

8) Even when paying with a credit card, write down every penny you spend so that you are less likely to be in denial on how much your spending.

9) Check online accounts regularly. (When I see that the new pair of shoes I bought just drove my balance up to $600, I'm more likely to return those shoes because I don't want to pay all that money !!!)

[John23]

People do need to take responsibility for themselves (and they're spending). It is a business...people need to read the fine print.

But alot of them skirt at the edge of whats responsible business. They seem to exist in their own world.

If I pay my dentist a few hours late, he's not going to penalize me by 20 or 30% of the bill (i.e. $25 late fee for an $80 teeth cleaning). I can see paying two weeks late, a month late, two months late. Obviously you should be penalized. Their fees aren't proportional to risk.

[GreenMachine]

I usually pay my credit card bills on time, but about once a year or so, I goof and miss the deadline. I have to be very careful to make sure I pay those bills the minute I get them in the mail! And the time where I have made a payment late, I can usually call the credit card company and get them to credit me back the $35 late fee.