It cannot be denied that credit cards are a part of life. We use it in buying groceries, clothing, paying utilities, purchasing airline tickets, making hotel reservations, etc. But many consumers who own credit cards fall in the trap of bad debt. Why?
It cannot be denied that credit cards are a part of life and surival. We use it in buying groceries, clothing, paying utilities, purchasing airline tickets, making hotel reservations, etc. But many consumers who own credit cards fall in the trap of bad debt and financial trouble. Why?
According to the Government Accountability Office (GAO), a lot of credit card holders do not realize that occasional misses or delays with their credit card payments can cost them extra bucks on interest rate and penalty charges.
In a study conducted by the GAO, it has been found that leading swipe cards in the market use confusing terminologies in their Terms and Conditions. Included in this study are Citibank, Discover, Chase Bank USA, Bank of America, MBNA America, and Capital One Bank.
Misleading Credit Card Conditions
Credit card companies are required by the law to disclose all fees in their card agreement. However, some statements may be vague or misleading. Add to this, the Terms & Conditions are often written in very fine print making them difficult to read. But if you won't spend time reviewing your contract, you could end up with a card that imposes unreasonable rates.
If some terminologies or phrases are unclear, don't hesitate to call the credit company and ask for a detailed explanation. As a consumer, it is your right to understand everything associated with your credit card.
Using a Credit Card to Your Advantage
Aside from misleading conditions, it has been found that many credit issuers today impose unreasonable rates and fees. If you take a look at cards in the market, most use the variable rate system of calculation. As a result, many cardholders have found themselves stuck in bad credit and the number is expected to increase in the coming years.
As a consumer, it is your duty to research for a credit card that would serve you best. Don't just rely on what the ads tell you. Use your senses. Research. Investigate. Inquire. Compare. Only by doing these steps can you find a credit card with reasonable terms.
Finally, upon finding the right credit, it is important to keep your lifestyle simple and think ten times before you use your credit card. Owning such card should be taken as a serious and wise responsibility. Failing to keep up with your responsibilities as a card holder could lead to debt, financial trouble and depression.
Things that Lead to Bad Credit
Every consumer must think about maintaining a good credit history. But maintaining good credit may not always be so easy. In this article, let's discuss the factors that can lead you to bad credit and how you can avoid them:
Bad Credit History - One Of The Basis in Hiring An Employee
Not many people reason pay attention to their credit history. Others may say that they don't need to build credit since they have no plans of getting a loan or a mortgage anyway. But even if you don't need to apply for a loan today, you may need to do so in the future.
Unsecured Credit Cards - How They Work
All credit cards- regardless of their type (business, personal, rewards credit cards, etc) - can either be secured or unsecured. This article talks about unsecured credit cards and how you can get the most out of them.
