Have you ever heard of "universal default" and its effect on your credit cards' interest rates? It is a term whose meaning you need to understand if you use your plastic from time to time. You could be wearing a target on your wallet and never have any idea.
The particulars of universal default allow your credit card issuer to raise your annual interest rate, although you were never late on any payments on that particular card. This is a reprehensible practice, but one that is growing in implementation every day.
From time to time, your credit card company will check your payment history with your other account holders to see how diligent you are about meeting your obligations. If you have been late on your car, for example, the interest rate on your Visa might jump up to 29%. The credit issuers figure that if you are late with your other payments that you will eventually be in trouble with them too.
Funny how those guys work. When I was in school, if I made an F on a math test, I was not rewarded with an F on an English test too - on an English test that I had not even taken, no less.
One strike and your out. You don't even have to be up at bat.
My recommendation: always be on time, utilize online banking to handle your personal finances, and challenge everything on your card statements that you don't feel is fair. You would be surprised how much you can get done just by making a little noise.
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