Credit Card Company: The Things You Need To Know

2007-03-08 10:33:40

( Financial )



A typical consumer like you has one or two credit cards ready for use at any time. A typical consumer also gets a lot of offers through email or regular mail for more credit cards that promise lower interest rates or a more attractive rewards program. One credit card company even promises lower interest rates if you transfer your balance from an existing credit card to another. Your choices may seem staggering and it is always a good idea to proceed with caution.

There are a lot of things you should watch out for if you have credit cards. Perhaps the most important thing you should look at is your interest rate. Your credit card company may have lower interest rates than normal cards but they can jack up your rates with minimal notice even if you pay your credit card bills on time. This is commonly called a universal default. This means that if you make a late payment on one of your bills even if it is just a utility bill, your credit card company can give you higher rates.

Credit card companies also target your children. You should be cautious as to whom you give your children’s personal information to. Even if it is just a supplemental card, your child’s information gets into an unsafe database. This means your child can get a credit card without your consent even if they are only in high school.

If you are thinking of getting a new credit card with a rewards program, you may want to take a closer look at the interest rates and the membership fees. Rates and membership fees are usually higher for these types of cards. A corporate card also gets more perks, but it may also mean you have to pay more when it comes to annual fees. If you really want a card with a rewards program, go with a credit card company that has specialized programs like points for gas or drugstore purchases.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.