Traps Set By Credit Card Companies

Credit card companies are a business and, like other businesses, they exist to make money. Their money-making tactics aren’t always the most straightforward. Universal default, for example, allows your credit card company to increase your interest rate if you are late on payments to your other creditors. Increasing interest rates allow credit card companies to make more money from you when you carry a balance from month to month.

Universal default is one of many questionable ways credit card companies make money from cardholders. Pay close attention to your credit card agreement to find out how your creditors might be charging you extra.