10 things credit card issuers don't say - Warning!

We all love to have credit cards & use it happily to spend blindly...But there are something we need to be aware of....

I'm Sharing this information with you all hope its usefulll.........

1. "We're waiting for you to screw up."

Despite new credit card rules, there are still many factors that can cause a credit-card issuer to raise your interest rate. Among them is when a lender reviews your credit history and decides to change the terms of your credit card after it's informed that you missed a payment with another credit issuer.

The Credit Card Accountability Responsibility and Disclosure Act does offer consumers some protection here, though. Should your credit-card issuer change the terms on your credit card, in most cases it can do so only for purchases going forward, not the balance you're already carrying.


2. "We'll give you advance notice -- but your options are limited."

With the Credit CARD Act, issuers need to give you at least 45 days' advance notice before making a significant change to your account.


3.  "When it comes to identity theft, you're at risk."

Credit cards are a common gateway for identity theft, and it's almost impossible for consumers to be certain that their identifying information won't be compromised. But there are some basic steps you can take to minimize the chances.


4. "We haven't forgotten about your kids."

Many of the new credit card rules are geared toward protecting those under 21 years old. But don't think the rules will keep credit card issuers at a distance.

For example, issuers no longer can give free stuff to college students in exchange for filling out credit card applications on college campuses or at college-sponsored events. But issuers can still give out those freebies as long as they don't require students to sign up for a credit card to get them. Representatives of Citigroup and Bank of America say their banks aren't doing this.


5.  "Our rewards can throw you off track."

In the credit card marketplace, rewards are a way for issuers to target niche audiences -- frequent fliers, for instance. Before signing up, figure out how much you'd have to spend to earn the incentives from a given card and if the card is geared toward your spending habits. And check to see if rewards on specific purchases are offered throughout the year; some credit cards rotate their rewards every few months.


6. "Deferred-interest plans can leave you worse off than when you started."

Stores often promote deferred-interest credit card plans with the sale of big ticket items like furniture, electronics and watches. But often these plans really are too good to be true.

Typically, such plans -- financed by a lender -- allow a consumer to purchase an item without paying interest during a promotional period, such as six or 12 months.


7. "Double-cycle billing isn't entirely a thing of the past."

A big change in the Credit CARD Act is the elimination of double-cycle billing. This is a formula that computes interest charges based on the two previous billing cycles -- effectively penalizing consumers who go from paying off their balance in the first month to carrying a balance in the second.

However, if your card doesn't have a grace period -- the period in which an issuer allows a card holder to avoid paying interest on charges by paying off the balance in full -- you still could be exposed.


8. "We're accepted around the globe, but beware of our rates."

By now, plastic has all but replaced the traveler's check as the preferred way to make purchases abroad. But beware of the charges that accompany these transactions.

At issue is the foreign transaction fee, a charge for converting a currency into U.S. dollars. Currently, Visa and MasterCard charge a foreign transaction fee of 1% for any purchases, and most banks that issue these cards add a second fee.



9.  "Late fees are still with us."

With the Credit CARD Act, consumers should be aware of the new changes to the time their payments are due. Prior to the new rules, many banks were setting deadlines as early as 9 a.m. or as late as 2 p.m. on the payment due date. Payments are now considered on time when received by 5 p.m. on the due date. And if the due date is on a weekend or federal holiday (when payments aren't processed), the credit card issuer must consider your payment on time if it arrives on the next business day.


10. "Go ahead and exceed your credit limit -- we like that."

With the new credit card rules, consumers have two options: Consent to be charged an over-the-limit fee or refuse to opt in and risk being denied if they try to exceed a card's limit.

You can be charged a fee of around $30 to $35 each month you're over the limit (or more if you exceed the limit with another transaction in a subsequent month).