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Credit cards - 3 Secrets you may not be aware of

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By: Good Nelly
on 25th Apr,2013

Your plastic card is one item that always remains in your wallet. It always stays in the top most pocket of your wallet.
Credit cards - 3 Secrets you may not be aware of


Your plastic card is one item that always remains in your wallet. It always stays in the top most pocket of your wallet. You're well aware of the interest rate on your credit cards. You know how much you can spend on your credit card every month. You've full knowledge of the reward programs too. However, do you really think you know each and every aspect about your plastic card? Not necessarily.

You may have used your credit card for several years. This doesn't mean you know everything about your credit card. There are still a lot of things that you may not know about your credit card. Credit card rules and regulations change from time to time. Other than that, credit card interest rate or credit limits increase or decrease with the change of circumstances. These are some minute details, which you can fail to detect at any point of time.

Just because you don't know each and every aspect of your credit card, it doesn't mean that you should always stay in the dark. After all, a sound knowledge on the credit card rules and regulations can help you take better care of your plastic card.

Check out the 3 secrets that you may not know about your indispensible credit card.

1. Credit card companies can charge interest rate as per their wish

Don't be too happy if you've obtained a credit card at a very low interest rate. Your credit card issuer can hike your interest rate as per his wish. Some of the banks that offer credit cards to consumers are not federally chartered. Therefore, they don't have to abide by the state laws pertaining to credit card interest rates.

The credit card issuer won't be able to change your interest rate during the promotional period. However, if you fail to make the required payments for around 2 months, then the credit card company can change the interest rate. The issuer has to notify you about the interest rate change 45 days in advance.

2. You can 'no' when the creditor tries to raise interest rate

In case the credit card company sends you a letter to inform that your interest rate will be increased, then you can refuse to accept their decision. There's a great chance that the credit card company will offer a fair deal to you. They may permit you to keep the credit card at the present interest rate only. On the other hand, they may just slash your credit limit or hike your minimum monthly payment amount or terminate your account only.

The credit card company can certainly increase your new rate. However, they can't ask you pay the full bill within a short period of time. If you don't want to pay the high interest, then you've the option to pay back the entire balance within 5 years at the present rate.

3. You can get protections for the unauthorized purchases

Have you lost your credit card? Are you not able to recognize a particular purchase made through your credit card? If yes, then don't lose your sleep due to these issues. Don't avoid reporting the matter to the credit card company thinking about the huge fees and penalties you've to pay. Rather, contact the credit card company as soon as possible. You may have to pay only $50 for the mess you're in. Some credit card companies won't even charge anything upon you.

If you're disappointed with a purchase, then you may request the credit card company to return your money. You can get a refund only when the purchase is worth $50 or more. You must have purchased the product within 100 miles of your house. Make sure you try to sort out the matter with the retailer first.

It is not that the credit card companies can only hike your interest rate. They can also change the type of interest rate charged on a credit card. For instance: you're paying fixed interest rate on a card. The credit card company can change it to a variable rate. All they need to do is inform you about the interest rate change 45 days in advance.

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