Paying Credit Cards Interest Than You Expected
Many mastercard holders join up for a credit account with an 8.9% interest rate and then later realize that their interest rate has been bumped to 27.4%. Why?
You know that your credit score affects the credit card rates that you just qualify for. However, did you know that a very little clause within the fine print of the mastercard terms and agreements, called the “Universal Default Penalty Clause” might mean that you’re already paying the next interest than when you signed up for the mastercard? What will this fine print mean to you?
If your credit score goes down or one in all your alternative credit conditions change, then your interest rate increases significantly. This will not mean any new charges you create to the present particular credit card account: the higher rate affects the whole balance. Yes, even items you purchased with the understanding that your interest rate would remain the first rate.
