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Credit card companies do a great job disclosing all of their terms and conditions; even though it's in a hard to read font and very technical language. But failing to understand those terms can be costly.
Most people know that when your bill arrives, it needs to be paid on time or you'll be hit with a hefty late fee; however, many don't know that paying late entitles the credit card company to raise your interest rate immediately and significantly!
And worse yet, paying late on one of your credit cards entitles all your other credit card companies to raise the rates you are paying them as well.
This is called the "Universal Default Clause", and it basically means that if you're late on one credit card account, all your other credit card companies can increase their interest rates too. This can happen even if you have paid your other accounts on time!!!
But the plot thickens, this extends way beyond late payments on credit cards. If your credit card company has the Universal Default Clause noted in their fine print, they can increase your interest rate if a late payment is reported by ANY other creditor, including utility bills, car loans, and home loans!
You better believe they are just waiting for the opportunity to increase your interest rate. This is why they continually monitor your credit report.
And just when you thought it couldn't get any worse, it's not just late payments that trigger the Universal Default Clause. Interest rates can be increased if a consumer exceeds their credit limit, bounces a check, or applies for additional credit. All of these factors are signs to the credit card company that a consumer may be turning "high risk." And the penalty? You guessed it, a higher interest rate.
Any time you have questions about credit, credit scores, or the credit reporting agencies, don't hesitate to give me a call. If I don't know the answer, I know where to find it.
If you have friends or family members that are credit challenged, there is absolutely hope available!
You do not have to have perfect credit to accomplish your dream of owning a home. I know alot of insider secrets. Let my knowledge and experience work for you.
Also, many of you forward these tips to your friends, co-workers and family members. If you will provide me with their e-mail addresses, I will be glad to add them directly to this valuable subscription. This will save you time and make sure they don't miss some important information.
Thanks for letting me help you & your family; I'm looking forward to talking with you soon!
Sincerely,
Ken
951-760-3833
CA DRE License #01418440
www.KenHallProperties.com
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