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- Why to Avoid Credit Card Deals with Universal Default Clause?
Why to Avoid Credit Card Deals with Universal Default Clause?
- By Wendy Drews
- Published 01/24/2008
- Credit Cards
- Unrated
Wendy Drews
Wendy Drews is a young perspective credit card specialist. She has a number of articles about credit cards and credit card deals.
View all articles by Wendy Drews
Today credit cards are an essential part of American life. We use credit cards to make purchases, rent cars, book tickets and hotel rooms, etc. Credit card deals are aimed to make your life easier and give you some benefits. But to be a success in credit cards you should know all the pitfalls of the business. Otherwise you will get into a credit trap even without noticing it. The worst thing about credit card traps is that they are set by credit card companies and these traps are legal.
Most consumers are too careless; many don’t even read their credit card agreements. It is a big mistake to skip the details in your credit card application. Besides, looking for the best credit card deal, most of us pay more attention to the benefits credit cards offer than to possible losses. But be careful while applying for a credit card read the agreement carefully!
Many credit card traps are hidden exactly in the fine print. Have you ever heard about <a href="http://www.creditcardspecialist.com/Credit-Card-Traps-3878019-page_34.php"target="_blank">universal defaul clause</a>? If you haven’t, you are lucky. But check your credit card application, make sure that there is no such a clause in it.
Universal default clause implies a boost in your interest rates in case you pay one of your bills late to any of your lenders. Imagine, in case you make a late payment on your mortgage, car loan or your credit card, your low interest rates are to boost! One late payment – and say “good bye” to your <a href="http://www.creditcardspecialist.com/Low-Rate-Card-Deals-861310-page.php"target="_blank">low interest rate credit card deal</a>.
If there is universal default clause in your credit card agreement, your creditor is entitled to r
aise your interest rates up to 30 percent in case you are late with your payments. No doubt, creditors will never miss a chance to get more money out of you! If universal default is imposed on you, you will become a cash cow for your creditors for a long time.
But what can you do to protect yourself and avoid this situation?
First of all, read carefully credit card agreements! Avoid <a href="http://www.creditcardspecialist.com"target="_blank">credit card deals</a> with universal default clause. If there is a clause in your credit card agreement that you don’t understand clearly, contact your lender and clear up the point. You will be able to avoid credit card traps only in case you understand every clause in your agreement to the full.
If it happens so and you have universal default clause in your credit card agreement, try to transfer your balance onto another card that doesn’t have this clause and cancel the old account. But mind, cancelling one of your old credit cards can affect your credit history. Call your bank or credit card company and clear up this question.
And one more important thing. Pay your bills on time and check your credit report from time to time. If you see a mistake in your credit report, contact your credit bureau to correct the mistake. Good credit report is essential for your financial well-being.
Use your credit card wisely, read your credit agreements carefully and you are sure to avoid many credit card traps.
About the Author
As a financial expert and freelance writer in one, Wendy Drews tries to help customers avoid many financial problems that relate to <a href="http://www.creditcardspecialist.com"target="_blank">credit card deals</a> She writes articles and helps people with advice how to get <a href="http://www.creditcardspecialist.com/Best-Credit-Cards-861308-page.php"target="_blank">best credit card deals</a>.
Most consumers are too careless; many don’t even read their credit card agreements. It is a big mistake to skip the details in your credit card application. Besides, looking for the best credit card deal, most of us pay more attention to the benefits credit cards offer than to possible losses. But be careful while applying for a credit card read the agreement carefully!
Many credit card traps are hidden exactly in the fine print. Have you ever heard about <a href="http://www.creditcardspecialist.com/Credit-Card-Traps-3878019-page_34.php"target="_blank">universal defaul clause</a>? If you haven’t, you are lucky. But check your credit card application, make sure that there is no such a clause in it.
Universal default clause implies a boost in your interest rates in case you pay one of your bills late to any of your lenders. Imagine, in case you make a late payment on your mortgage, car loan or your credit card, your low interest rates are to boost! One late payment – and say “good bye” to your <a href="http://www.creditcardspecialist.com/Low-Rate-Card-Deals-861310-page.php"target="_blank">low interest rate credit card deal</a>.
If there is universal default clause in your credit card agreement, your creditor is entitled to r
But what can you do to protect yourself and avoid this situation?
First of all, read carefully credit card agreements! Avoid <a href="http://www.creditcardspecialist.com"target="_blank">credit card deals</a> with universal default clause. If there is a clause in your credit card agreement that you don’t understand clearly, contact your lender and clear up the point. You will be able to avoid credit card traps only in case you understand every clause in your agreement to the full.
If it happens so and you have universal default clause in your credit card agreement, try to transfer your balance onto another card that doesn’t have this clause and cancel the old account. But mind, cancelling one of your old credit cards can affect your credit history. Call your bank or credit card company and clear up this question.
And one more important thing. Pay your bills on time and check your credit report from time to time. If you see a mistake in your credit report, contact your credit bureau to correct the mistake. Good credit report is essential for your financial well-being.
Use your credit card wisely, read your credit agreements carefully and you are sure to avoid many credit card traps.
About the Author
As a financial expert and freelance writer in one, Wendy Drews tries to help customers avoid many financial problems that relate to <a href="http://www.creditcardspecialist.com"target="_blank">credit card deals</a> She writes articles and helps people with advice how to get <a href="http://www.creditcardspecialist.com/Best-Credit-Cards-861308-page.php"target="_blank">best credit card deals</a>.