How can a credit card company make money? Let me count the ways…

  1. Universal default penalties. Card issuers regularly check their customers’ credit reports for late payments on any of their bills. Any late payment can be used as an excuse to increase your credit card’s interest rate, regardless of the fact that you have never made a late payment to the card issuer.


  2. Bait-and-switch card offers. Direct mail offers generally advertise the issuer’s premium card at low interest rates. However, the fine print says the company can issue a more costly non-premium card with a higher annual percentage rate if you fail to qualify for the premium card. So when that issuer’s card arrives in the mailbox, check the actual interest rate that you have now signed up for.

    3. This is a preview of: “Hidden” credit card charges.(482 words, estimated 1:56 mins reading time)
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    <\/p>

    How can a credit card company make money? Let me count the ways…<\/p>\n\n\t

      <\/ol><\/p>\n\t

    1. Universal default penalties. Card issuers regularly check their customers’ credit reports for late payments on any of their bills. Any late payment can be used as an excuse to increase your credit card’s interest rate, regardless of the fact that you have never made a late payment to the card issuer. <\/p><\/li>
      \n

    2. Bait-and-switch card offers. Direct mail offers generally advertise the issuer’s premium card at low interest rates. However, the fine print says the company can issue a more costly non-premium card with a higher annual percentage rate if you fail to qualify for the premium card. So when that issuer’s card arrives in the mailbox, check the actual interest rate that you have now signed up for.<\/p><\/li><\/p>\n\n

      This is a preview of: “Hidden” credit card charges.<\/a>(482 words, estimated 1:56 mins reading time)<\/div>","protected":false},"excerpt":{"rendered":null,"protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"_links":{"self":[{"href":"https:\/\/www.cashunclaimed.com\/unclaimed-property-blog\/wp-json\/wp\/v2\/posts\/111"}],"collection":[{"href":"https:\/\/www.cashunclaimed.com\/unclaimed-property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cashunclaimed.com\/unclaimed-property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cashunclaimed.com\/unclaimed-property-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cashunclaimed.com\/unclaimed-property-blog\/wp-json\/wp\/v2\/comments?post=111"}],"version-history":[{"count":0,"href":"https:\/\/www.cashunclaimed.com\/unclaimed-property-blog\/wp-json\/wp\/v2\/posts\/111\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.cashunclaimed.com\/unclaimed-property-blog\/wp-json\/wp\/v2\/media?parent=111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cashunclaimed.com\/unclaimed-property-blog\/wp-json\/wp\/v2\/categories?post=111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cashunclaimed.com\/unclaimed-property-blog\/wp-json\/wp\/v2\/tags?post=111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}