Credit Card Secrets Banks will not tell you

Credit cards have influenced the lives of people in many different ways, and in certain instances people fall victim to undisclosed policies that are made to maximize the profits to its lending bank. These policies may be written in the fine print of the credit card agreement although banks do not really take any effort to ‘disclose’ it to their customers purely because of its intimidating nature. This article will explain few such credit card secrets some banks will not tell their customers at the time of issuing the same.

Fees are negotiable

One such secret is the fact that, the annual fee and other such fees in relation to a credit card can be altered or even abolished at the request of the customer. However, this will only take place if the bank recognizes the customer as having good credit worthiness and a good rapport with the bank. Thus, by requesting the bank to reduce the interest or the annual fee, one might be able to receive a pleasant surprise although it may not work with each and every bank.

Shortened due dates

In relation to most credit cards, the interest free grace period would be around 25 days or more. However, it should be remembered that, some banks may opt to reduce this grace period to as low as 20 days. This may result in paying additional money to the bank and therefore should be looked into from the very beginning when someone obtains a credit card.

Interest backdating

It is important to understand how the bank charge interest for items purchased through their credit cards as some banks tends to charge interest from the date of purchase rather than the date of making the payment from the credit card account. Thus, in such instances, the customer would be paying interest for additional few days without even realizing what is going on.

Two-cycle billing

In instances where someone switch from paying in full to partial payment of a credit card bill, the bank may charge interest for two months for the first month of failed total balance payment. Thus, it is always a good idea to pay the balance in full or to keep in mind such additions may take place in the future.

The right to set-off

This means that the bank has the ability to deduct any payment dues in relation to the credit card from another deposit account that one may be having in the same bank. Thus, in case of a potential delinquency, one should opt to open the deposit account in another bank than in the one offering the credit card.

Interest rate hikes

Although interest rate hikes are obvious in the banking business, the fact that it can be applicable to the brought-forward balance is something useful to know for the credit card owner. Thus, one should make sure the balance is paid in full before such increase in the interest rate take place or otherwise risk paying extra interest for purchases made in the past.

When looking at these instances, it is apparent that there are many secrets the banks do not disclose to their customers in the same way they disclose some of the other attractive features of their credit cards. Thus, it is important for a card owner to be vigilant and act wisely to avoid falling into such ‘traps’ when dealing with credit cards.