April has been Credit Card Question and Answer month here at Financial Elite. We continue with Part 10 with information provided from an article from SmartMoney about the little known rules that are costing you money and putting your credit, your identity and your family at risk.
Think your credit card transaction will be declined if you go over your limit? Think again. If you do go over your limit you have regret having done so. It could raise credit card interest rate sky high.
Many people learn the hard way when they go over their credit card limit and their interest rates sky rocket to 29%. An event like this, among others, can push you into credit counseling and into a debt-management plan.
Keeping you in the hole forever, banks may continue to charge an over limit fee against maxed out credit cardholders. A penalty of $30 every month your credit card balance remains over the credit limit. A lot of credit cardholders will deal with the fee rather than the embarrassment of being declined.
Over limit fees can simply be another way for banks to make money at the expense of the unknowing consumer.
If banks are willing to allow charges over the limit then they should accept he profit that comes from the increased interest rate charges and be satisfied with that.
No comments:
Post a Comment