Understand your credit card company

30/03/2007

Latest credit card news from fool.co.uk uncovers the techniques credit cardproviders use to maximise their potential revenue.

The study discusses 12 methods that are employed by credit card companies to get more out of customers who not only take full advantage of the deals on the market but also the sensible credit card users.

Some of the areas that have been discussed focus around credit card companies adding hidden fees and charges to your monthly statement, charges for membership fees and hidden catches for balance transfer deals.

A few of the interesting techniques providers used were negative payment hierarchy hoax where the credit card company ensure the least expensive debt is paid initially when payments are made whilst the more expensive debt is hit by interest to accumulate further debt. Another approach is when you could be charged £50.00 for using a credit card cheque for supposed handling fees. credit card companies sometimes send you nice letters to say your credit limit has been increased for whatever reason, are they just luring you into getting into more debt and spending what you don’t actually have.

In conclusion, it is extremely important that all communication that you receive from your provider is thoroughly checked and understood.