Every credit card comes with a detailed document called the Terms and Conditions. This communication is difficult to read and even harder to understand. But it contains important information about your credit card and what the issuer can do to its cardholders.
Recently, National Debt Relief, one of the biggest companies in debt consolidation and credit repair, issued a list of five little known facts about credit cards. This list details surprising information about the rights credit card companies have and how your card may be affected by them. Here are the facts at a glance:
1. Credit card companies can increase your rates. They do not need your permission to do so, and they can make their rates whatever they want. Once you get past the first year with a card, it's free game.
2. You don't have to pay the new rate. If you don't like the new rate you're getting, you can decline to pay it. The credit card company will then try to make a deal with you, either by increasing your minimum payments while remaining at the old rate or cancelling the card altogether. If they decide to cancel, you will have five years to pay off your balance at the old rate.
3. Your credit card has built-in protection. If you come across an unauthorized charge on your card, just report it and the company will reverse the charge.
4. Your fixed rate may be variable over time. Your fixed rate APR may stay the same over the years, but eventually, the company may change how it calculates this interest rate. If there is going to be an increase in your future, the credit card company has to give you 45 days notice about it.
5. Your no limit credit card may have a limit. Even though you can spend whatever you want on the card, you may be limited in the amount of money you can carry over to the next month. Be aware of that before you get caught with a balance you can't cover.