Beware Sneaky Credit Card Repricing
The numbers are shocking: 50% of American card holders don’t realize they’re paying a penalty interest rate on their balance. If they do know about the inflated rate, they don’t understand why it has been applied to their balance. This is only one of the discouraging statistics turned out by the Center for Responsible Lending. Their study shows that, when it comes to credit cards, what you don’t know can hurt you.
Changes to Interest Rates
The way that credit card issuers handle interest rate change notifications has come under criticism. Namely, they don’t ensure that the customer knows how much interest they’re paying or why.
A hike in interest could be the result of a late or missed payment, or could come about simply because the company increased their interest rates in general. Be aware that card companies reserve the right to change your interest rate with as little as 14 days’ written notice.
