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1.Even if you pay your credit card bill on time, your credit card company can still increase your interest rate if you are
late in paying other loans.
This is known as the universal default clause which allows your credit card company increase your rate. The credit card company believes
that if you are late in paying a bill, you become a credit risk, and as such your rate should be increased. The universal default clause is located in your
credit card contract. The number of credit card companies adding this clause to credit card contracts are increasing.
2.Your Credit score determines your credit card interest rate. It also determines whether you will be able to
rent or buy, purchase a car and in some cases if you will get a job or be promoted.
The credit score is the financial blood line. It is a number that determines your credit risk. It is also known
as the FICO (Fair Isaac Corporation) score. According to Experian, the national score index for 2008 is 693 - a powerful indication of
the nation's overall health.
3.There are no federal limits on the interest rate a your credit card company can charge.
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The National Bank Act of 1864, section 85, allows a national banking association "to charge on any loan" interest at
the rate allowed by the laws of the State "where the bank is located." As such Banks reestablished their business in states where there are
no caps on interest rates such as South Dakota and Delaware. Take a look at your bill, chances are that the return address is South Dakota
4.There are no limits fees a credit card company can charge. Fifteen minutes late on a $5 bill can translate into exorbitant fees.
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