If the terms of your credit card change, it could cost you money. So many people just take their credit card statement out of the envelope and don't read any of the other information or changes that the credit card company sends them.
Some people even think that their rates won't change and that their terms won't get worse.
Make sure to read everything carefully that your lenders send you. For example, you may be paying more in late fees, overlimit fees, and other fees. The number of loans that go bad could also be going up.
Some credit cards have recently increased the minimum amount percentage by 1% or more. This helps you pay off your credit card about two weeks faster, but it can hurt people who are already at their limit.
Many people who use credit cards are angry when things change. They ask how they can do this. They can, though. They have always been able to do it, and they do it often.
When you accept a credit card, you agree to the terms that were given to you when you took the card. But you are also signing a statement that says the issuer can change the terms whenever it wants and to whatever it wants. Most credit cards only have to give you 16 days' notice when their terms change.
What can you do if the terms of your contract change? You can either take the card or cut it up and throw it away. If you choose option two, your current terms will stay the same, but you will lose the card.
You can't say you didn't know if you don't read the terms. The next time you buy something with the card, you are agreeing to the terms. You are agreeing to new rules without reading them.
Plus, it's likely that the terms won't change in a way that helps you. Last year, credit card companies made more than $16 billion from late fees. Seventy percent of that money came from fees for being late. The prices are going up. Last year, most people paid more than $34 per event.
Make sure you know everything about your credit cards, like the interest rates and fees. Know that these rules can change at any time. By taking on a debt you can't pay off, you are taking a huge risk. Before you agree to something, make sure you know what could happen.
Check your bills to make sure you're being charged the right amount. Your rates can go up even if you don't do anything wrong. There are a lot of reasons why your card company might change your rate.
Set up regular minimum payments if you don't want to ever have to pay that late fee. If you want to pay off your balance faster, you can always pay more at any time during the month. But if you have at least the minimum amount taken out automatically, you'll never miss a payment.
If you can see that trouble is coming, you should do something right away. Waiting can cost you money if your accounts start charging you new fees. Before you have trouble with your card, talk to the lender.
