5 Little known credit card secrets that should never be missed

Duran Mueller
Nov 12, 2007
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We all like secrets, don't we? And, yes credit card companies do have their own secrets. As true with all other secrets, only a privileged few know about these. Many have found out them after harsh experiences, why don't you simply check them out and benefit from others experiences?

1. Universal Default Clause

By far the most dreaded and most underrated secret, the universal default clause is a legal whip in the hands of credit card companies by which they can jack up your APR's if you default anywhere. Be it a late payment for your phone bill, electricity bill or any other bill, credit card companies can use it as an excuse to increase your interest rates and withdraw any reward programs. So, be careful and read the fine prints. If it says 'Universal Default Clause', its time to shy away from that credit card. After all the market is flooded with other offers and a little bit of shopping can save you a lot of trouble.

2. Due dates can change

Believe it or not, some credit card companies like to surprise you with changing due dates. The obvious reason is to catch the credit card holder unaware and slap late payment penalty and default APR on the hapless consumer. Those who have habit of presuming things should watch out this one carefully. Credit card companies often spring up surprises. So, unless you have everything in writing, including the fact whether the due dates will be fixed or change, you should read that monthly credit card bill very very carefully, every bit of it.

3. Credit Union Cards are money savers

Very popular among smaller communities, these credit cards bring in a welcome relief when it comes to interest rates and other penalties. Though they come with limited acceptability, however they can save quite a sum with their low rates.

4. Annual Fees and Late Fees can be waived

Yes, credit card companies love good customers and if you have an exceptional credit history and repayment record, you can ask for reversal of late payment penalties and annual fees. You'll be surprised how a single phone call can save you a lot of money, but remember, asking is the key and the results will be better if you have a option with you, which can be used as a leverage to put your point forward. I hope you get the idea.

5.Life is perfectly well without the insurance that come with credit cards

After paying out huge sums, many people have found out that credit card insurance are pretty much overpriced, don't eliminate the debt and just delays it by some time. Another such trick is credit card security insurance, which protects against unauthorized charges when your credit card is lost or stolen. But according to federal law you are liable for just $50 if you report the case and most of the credit cards come with a $0 liability insurance. So, what is the point in burning hole in your pocket when you can do without any such insurance.

These things can matter a lot if we know about them at the right time. Credit cards are good if we use them wisely and pay the balances in full every month. This gives us a ' free credit' and doesn't incur any interest. However if a credit card holder throws the caution to winds, credit cards have ample potential to throw his entire life out of gear.