Dirty Little Credit Card Tricks - in AOL 5-3-08

[Flamingo]

Here are some great "Dirty Little Credit Card Tricks" listed today in AOL Finance:

"Dirty Trick #1: Say "Bye-Bye" to Your Grace Period

No grace period means that you'll start accruing interest the moment you charge something. That can cost you a bundle of "extra" interest.


Most credit card issuers have already reduced their grace period from 25 days to 20 days. Many others have eliminated the grace period altogether. Now they are coming up with more and more reasons to take away your grace period. Miss a payment? Stop carrying a balance? Bye-bye grace period!

Dirty Trick #2: Punishing you when you are credit smart.
If you want to see my beautiful wife throw a complete fit, just mention any of these scandalous fees in her presence! These fees are the lowest of the low because they penalize you for being a responsible credit card user.

Some of the biggest offenders include charging you a fee for:

Closing your account
Failing to use a card for a period of time (such as six months or a year)
Not carrying a balance (how DARE you!)
Every transaction each and every time that you use your card
If your card charges you any of these fees, it's time to look for a new card! Click here for our tips on how to find the best card for you.

Dirty Trick #3: Doing you the "favor" of sending you "convenience" checks.
Credit cards often send you "convenience" checks so that you can write checks against your credit card account. Isn't that nice of them? Please!

DON'T do us any "favors"!

What they bury in the fine print is that these checks usually carry very high interest and fees -- even higher than regular credit card charges. Some cards also give you no grace period on convenience checks, so you start paying interest from the day you write the check! Shred these little "gifts" whenever they arrive.

Dirty Trick #4: Psst... Hey, buddy, want to skip a payment?
In their infinite generosity (ha!), some cards will "invite" you to skip making a payment. This "helpful" offer, which sounds great at first blush, often comes after the holidays when your balance is big and your wallet is feeling stretched. DON'T DO IT!

Skipping that payment can lead to a host of trouble -- from a higher interest rate to possibly having to make extra payments in the future.

Are you starting to notice a pattern? You should be skeptical whenever your credit card company does something "nice" for you without you asking for it.


Dirty Trick #5: Lowering your minimum payment due.

Another way some cards try to jack up their profits and lure you deeper into debt is by lowering the minimum payment due on your balance. It used to be cards required a minimum monthly payment of about 4% of your balance, but many now require as little at 2%. Don't fall for it!

Going from a $40 payment to a $25 payment on a $2,500 balance means it will take you an extra 19 months to pay off the debt.


Dirty Trick #6: It's 5 o'clock... Do you know where your payment is?

We all know that our payment is due on a certain date or it's late, right? But a new twist being thrown into the mix is having your payment due by a certain time on the due date. If your payment is due at noon and gets processed at 12:01, you get socked with a late fee AND likely a higher interest rate.

Gimme a break! Carefully check your statement so you avoid this trap.

Dirty Trick #7: "Over the limit" fees

Credit cards charge you a hefty fee for going over your credit limit. Look, we don't have a problem with penalties for that. But now these fees have gotten excessive -- almost $40! Plus, credit card issuers don't exactly discourage you from going over your limit when they approve charges and balance transfers that put you over your max.

Dolan Smart Credit Moves

So there you have it: Seven tricks and traps you now know how to avoid. But credit card companies will keep dreaming up new ones. So here's the bottom line on how to protect yourself:

Don't sign on with a card until you have a list in writing of all fees that the company charges. You can find these in the small-print section of your credit card application. Or, if you apply online, you will have to agree to all of the terms and conditions as part of your sign up process. You can always call the company, too. Whether in print, online or on the phone, read carefully before you agree!

Also be sure to actually read any notices your credit card company sends you about changes to your card agreement. That's your chance to catch any changes before they come back to bite you."

[TX Bluebonnet]

Something else that seems like a dirty trick is when you make a payment over the phone and there's a "convenience" fee involved for doing that, but instead of rolling that fee into your payment right then they charge it to your credit card. I've had to do that on occassion to avoid the late fee which is of course higher than the convenience payment fee. One time I paid off the balance on a card and had only that $10 charge on the next month's statement. Well, I forgot about it until the last moment since I was thinking I'd paid it off. I called to pay that $10 and of course incurred another $10 charge. The next month I made sure to remember and mail in a stupid check in time. Sheesh.

[danaf]

oh yeah - sallie mae (sig loans) is notorious for extending payments out when you pay extra as if they are doing you a favor. They do this automatically without asking you if it is what you want.

I was just on the phone with them the other day and told them never again to extend my due payment out when I pay extra - ever again! I even faxed them a letter about this. Cause the way I see it, I can't discharge them in bk, they won't do forbearance, and they are screwing up my numbers when I file. Cause whenever I pay extra, my min. due each month goes down. Cause they never want me to pay in full. I've had this damn loan since 02 and the principal has gone down very little. I've only gotten smart about it since lately. So far - I've paid them thousands. God I wish I could discharge this in bk.

I absolutely hate them with every bone in my body.

[TX Bluebonnet]

oh yeah - sallie mae (sig loans) is notorious for extending payments out when you pay extra as if they are doing you a favor. They do this automatically without asking you if it is what you want.

My husband has a student loan through Citibank and they did the same thing to us. We now know when we pay more than the minimum payment to put a checkmark in the box that says the extra is for principal. We didn't even notice that box until it was pointed out to us by Citibank when we complained. And I agree it sucks that lenders "assume" things especially when it's not in the borrower's best fininacial interest.

[TX Bluebonnet]

One of the things that put me over the edge was a trick used by Citi Bank with my AT&T Universal Card. I used to sit down in the evening and pay my bills and I used a calender of who was due on what day. I paid almost all my CC payments online at the issuers web site so it was an "instant" payment.

AT&T does two things that are down right next fraudulent.

1. The due date changes by as much as 7 days each month. It caught me off guard on time. I went to pay and it I was late by almost 5 days. I looked at my calender and it said it was due the next day. I got out my statement and it said it was due 5 days ago. I pulled out another statement and the date moved all around. So I called and complained and was told that was there billing system it can be different by as much as 7 days. WTF? How? Well since we have only a 20 day grace period that gives us 10 or 11 days to move your due date around is what I found out. So they refunded the late fee.

2. On a couple of times I paid my bill on the day it was due. Then the next month I noticed I had a late fee. I called and asked why, one time I was told they had a computer problem and they refunded the fee (this was not what really happened but this is what I was told). Then shortly after that I again loged in the evening to pay my bill on the due date. Its accepts my payment as it did before and everything is fine. I get a late fee on my next statement. I call to ask why..this time I am told... if you read you card member agreement it states your payment must be received by us no later than 3:00 pm on the due date. Well thats Eastern time and I am in the pacific time zone. So that means I would have to pay my bill online no later than noon for it not to be late.

So I ask to have the fee removed and I am told NO, WTF...excuse me?? No sir you have been late 4 times in the last 9 months. Your account is under review we will contact you shortly by mail. So a week later I get my "review" at rate increase to 29.9% on a $24,500 balance. It was 9.9% and I had a balance transfer that was at 3.9% for life that was almost $10K of that. I had no way they would reduce the rate. In 6 months of on time payments they would review my account and see if the rate could be lowered to 21.9% and then again after 6 months see if I "qualify" for a 19.9% rate.

Hmmmm....can you say....I decided not to make anymore payment at all....it was the start of the end when BoA jacked my rate on two cards to over 30% after an "account review" within two weeks of Citi Bank jacking up this rate. I now had more than $55K at over 30% interest plus all my other bills....screw em...

Wow, what a lousy business model for any company to have. Sorry you had to go through all that. I once had a creditor that changed the due date just as you've described. Unfortunately, I missed the due date more than once with them before I finally was able to close out the account. I'm not the most organized person and not the best at keeping up with roaming due dates - apparently their ideal type of customer - but who the heck sticks around for more of that if they can at all help it? This type of trickery really ticks me off.

[rfassett]

Here's a thought. If you have filed bk, (especially chapter 7), make yourself a promise to pay those jerks back by never, ever, EVER, getting another credit card. Why do we think that we HAVE to have a credit card. We kissed all of ours good-bye and good riddance when we filed. I don't want anymore credit cards, not secured nor unsecured, none! They (the credit card companies) are nothing more or less than legal thieves. Period!

Now, all of that said, we have a debit card attached to our checking account and a couple of weeks ago, I opened a "pre-paid" credit card - which is actually (and it says right on the card) a debit card. Yes, there are load-up fees and there are transaction fees attached to this card, but I know exactly what they are and I have pretty much full control of when they apply. And the card is accepted anywhere that Visa is accepted. May not be the best alternative, but it will get the job done when I really need to use a "credit card".

[Cali]

I think having a Credit Card is a good thing, especially if you plan on buying a house or something in the future.

Here's a thought. If you have filed bk, (especially chapter 7), make yourself a promise to pay those jerks back by never, ever, EVER, getting another credit card. Why do we think that we HAVE to have a credit card. We kissed all of ours good-bye and good riddance when we filed. I don't want anymore credit cards, not secured nor unsecured, none! They (the credit card companies) are nothing more or less than legal thieves. Period!

Now, all of that said, we have a debit card attached to our checking account and a couple of weeks ago, I opened a "pre-paid" credit card - which is actually (and it says right on the card) a debit card. Yes, there are load-up fees and there are transaction fees attached to this card, but I know exactly what they are and I have pretty much full control of when they apply. And the card is accepted anywhere that Visa is accepted. May not be the best alternative, but it will get the job done when I really need to use a "credit card".

[sisterfunkhaus]

2. this time I am told... if you read you card member agreement it states your payment must be received by us no later than 3:00 pm on the due date. Well thats Eastern time and I am in the pacific time zone. So that means I would have to pay my bill online no later than noon for it not to be late.

Then there is the lovely trick of the site saying that the payment won't post until 72 business hours after you pay it on the web. This means that you must pay your payment 3 business days before the due date.

Apparently, those credit companies haven't caught up with instant pay and post technology. You'd think with all of their billions of bucks, they would be able to do that. I guess they'd rather sit around collecting late fees on payment that weren't actually made late though...

[AMISLANDER]

Here's a thought. If you have filed bk, (especially chapter 7), make yourself a promise to pay those jerks back by never, ever, EVER, getting another credit card. Why do we think that we HAVE to have a credit card. We kissed all of ours good-bye and good riddance when we filed. I don't want anymore credit cards, not secured nor unsecured, none! They (the credit card companies) are nothing more or less than legal thieves. Period!

Now, all of that said, we have a debit card attached to our checking account and a couple of weeks ago, I opened a "pre-paid" credit card - which is actually (and it says right on the card) a debit card. Yes, there are load-up fees and there are transaction fees attached to this card, but I know exactly what they are and I have pretty much full control of when they apply. And the card is accepted anywhere that Visa is accepted. May not be the best alternative, but it will get the job done when I really need to use a "credit card".

If you have not noticed, in our world today, it is almost impossible to do certain things without a credit card, i.e., rent a car, buy airline tickets, concert tickets...etc., this is because if you pay cash (for rental car and/or airline tickets) it is not traceable. This especially applies to terrorist situations and or drug dealers renting vehicles for illegal means...cash, for the most part, is not traceable unless it's c.i. money.

Also, you need to build a credit trail in this world. You can't do that with cash as it holds no real value of a responsibility factor in terms of credit.

Those of us who have bk'd and understand our mistakes, will certainly, try at all costs to avoid what caused our financial disasters....but, we do need to show responsibility by using credit wisely.

Credit cards are not evil in themselves, it's really all about the corporations tactics to recoup their losses of people bking by charging more than ever now because of the percentages game.

[danaf]

My husband has a student loan through Citibank and they did the same thing to us. We now know when we pay more than the minimum payment to put a checkmark in the box that says the extra is for principal. We didn't even notice that box until it was pointed out to us by Citibank when we complained. And I agree it sucks that lenders "assume" things especially when it's not in the borrower's best fininacial interest.

My loan is directly with Sallie Mae and they do not even offer that option on their payment slips.

[rfassett]

AMISLANDER, who told you that you HAVE to build a credit trail? The same people that want to steal all of your money, no doubt. Cash is king - make no mistake about it. And I have had absolutely zero trouble renting cars, buying theatre tickets (don't go to many concerts), buying airline tickets, and/or staying in hotels with my debit card and/or my "prepaid" credit card, aka another debit card. Credit cards are NOT the (evil) necessity that folks make them out to be. You can build that same credit history with a small "secured" car loan or a secured mortgage. Credit cards, contrary to the popular beliefs of the society in which we live, are not a requirement to go forward.

[tcauvet]

I agree with rfassett. Since I've been in ch 13, I have lived on cash- and I love it! I find not depending on credit cards liberating. Once more- I love the fact that I'll never have to worry about being "screwed" by the credit industry. I'm not judging people who choose to have a credit card. It's your choice. I don't even care about my debt - err- credit score! I mean, think about it, why should I get more debt after my bankruptcy is over? I had to go into ch 13, because I got into debt problems. I laugh when people tell me the first thing I should do when my bankruptcy is over is get more debt. But again, I'm not criticizing others who choose to have credit cards. We all must do what we feel is right.

[kris]

Another major problem (which I have personally encountered) is balance transfer offers not fulfilled. I did a balance transfer with B of A and the only reason I did it was 0% apr through the end of the year. Instead they did the offer, but my statement I was being charged the normal interest rate. After repeated calls, they claim they had the right to revoke the offer, not because my credit has changed at all, but because you sign an agreement giving them that right. I plan on taking it to arbitration, because you also sign a document saying you can't sue.

[justplaintired]

Here's a thought. If you have filed bk, (especially chapter 7), make yourself a promise to pay those jerks back by never, ever, EVER, getting another credit card. Why do we think that we HAVE to have a credit card. We kissed all of ours good-bye and good riddance when we filed. I don't want anymore credit cards, not secured nor unsecured, none! They (the credit card companies) are nothing more or less than legal thieves. Period!

Now, all of that said, we have a debit card attached to our checking account and a couple of weeks ago, I opened a "pre-paid" credit card - which is actually (and it says right on the card) a debit card. Yes, there are load-up fees and there are transaction fees attached to this card, but I know exactly what they are and I have pretty much full control of when they apply. And the card is accepted anywhere that Visa is accepted. May not be the best alternative, but it will get the job done when I really need to use a "credit card".

I am in total agreement, no more cc for us. Only a debit or prepaid card from now on. We had a similar story as Bigboy and that's why we are in BK. You know it seems funny to me that anyone would feel any quilt towards filing on a CC, they don't feel guilty about upping our rates making our payments unreachable. it's almost like they just wait until your balance is up there, then they drop the bomb, high interest rates! And all the begging and pleading doesn't seem to matter, good credit, doesn't matter, nothing matters, all they want is MORE MONEY! They didn't even care when I cried and said if you can't lower the rate we will have to hire an attorney because we can't make this payment, basically it was "GO AHEAD"!


I have read alot of threads regarding cc on here and it seems you have people who are on both sides of the fence when it comes to them. Personally if it wasn't for cc we wouldn't be here. We managed our money fine up until the rates started increasing, making the payments harder and harder to make. Yeah we should have stopped using them long ago, (actually we should have never gotten a card in the first place DH idea, not mine) but when you have to take a weeks paycheck to pay the cc, how can you quit charging? It's a vicious cycle and I feel they sucked us in only to kick us when were down.

[sayanika]

Hi folk, I just heard from a friend of mine in Manhattan that magician David Blaine & famous trickster Rory Emerald are smack-dab-in-the-middle-of-a-hoax! Does anyone know what kind? What location & exactly how the ruse is being carried out? How long have Rory & David been friends? What sort of elaborate hoax is David Blaine & Rory Emerald orchestrating as of this writing? Thank you all for any input.