Discover the secrets lurking behind your credit card statements that banks won't readily disclose. Here are six eye-opening revelations to empower you in your financial journey:
1. Interest Backdating
Unveil the practice where some card issuers charge interest from the date of purchase, not just when the charge is posted, potentially costing you more if you don't pay in full monthly.
2. Two-Cycle Billing
Learn about the sneaky tactic of charging two months' worth of interest if you transition from paying in full to carrying a balance, catching many cardholders off guard.
3. The Right To Setoff
Understand the risks associated with having both deposits and credit cards at the same bank, as they may have the authority to seize funds from your deposit account if you become delinquent.
4. Negotiable Fees
Take control of your finances by knowing that annual fees and interest rates are negotiable, empowering you to request reductions or explore better options elsewhere.
5. Retroactive Interest Rate Hikes
Beware of teaser rates that expire, potentially subjecting your existing balance to significantly higher interest rates unless you pay in full or close the account.
6. Shortened Due Dates
Be aware of shortened grace periods for paying off new purchases, especially if you're accustomed to a longer grace period, and take action to ensure fairness in your billing cycle.
Armed with this knowledge, you can navigate the credit card landscape with confidence, avoiding pitfalls and maximizing your financial well-being. Remember, understanding the fine print is key to staying in control of your finances and avoiding unnecessary fees and charges.
(Source: Massachusetts Executive Office of Consumer Affairs and Business Regulation)
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