Some surprises are good - a surprise birthday party, a surprise proposal, a surprise gift. Other surprises are not so good - bank closures, gas price hikes. Beware, your credit score may have some scary surprises of its own.
1. Your interest rate goes up
Credit card issuers have a range of explanations for
increasing your interest rate from late credit payments to changing market conditions. No matter the reason, finding out your interest increased is never a pleasure. In most instances, you should be notified and given the chance to
opt-out before the new interest rate goes into effect.
2. Your credit card gets declined
Few things are more embarrassing than having your credit card declined while as the people behind you send icy stares at you taking so long. Even though the decline might not be your fault, be prepared to use another form of payment. Or, just walk away from the purchase; the extra debt might not be worth it after all.3. You forget to pay your credit card bill
You finally remembered your credit card bill was due on the 15th of the month. Only it's 10 days later. Call your credit card issuer immediately and explain the situation. Offer to make a quick payment over the phone or on the internet. If it's the first occurrence, you can request the late fee to be waived and that you do not receive the
penalty rate.
4. You have to apply for a loan, but you have bad credit
Putting in a loan application when you have bad credit is an uneasy feeling. The review period leaves you sitting on pins and needles wondering the outcome. Ask the lender for their approval criteria before putting in an application.
Check your credit report and score to find out if you meet the criteria. You may save yourself a lot of stress.
5. You lose your wallet or purse - with your credit cards in it
Your first thought, "What if someone uses my credit card?" When you
lose your credit cards, cancel them as soon as possible to prevent fraudulent charges. It's a good idea to keep photocopies of the back of your card so you can easily contact your card issuer's credit service to cancel your card. You can also use a billing statement to get your card issuer's contact information.
6. Your teen takes the credit card for the first time
Teens have to learn how to use credit cards at some point and sooner is better than later. But, knowing that doesn't make it any less nerve-racking. Don't let your teen use your credit card unless he has a proven track record in age-appropropriate financial responsibility (e.g. makes good spending and saving decisions).7. Your credit card application gets denied
Having a credit card application denied is especially scary when you don't know you have bad credit. Federal law requires the bank to send a letter letting you know why your application was denied. You'll also have access to a free copy of the credit report that was used to deny your application. If your application was denied because of incorrect information in your report, you can have the information removed and reapply.8. Your billing statement includes a mysterious charge
At this point, you wonder who made the charge and how'd they get your credit card number. First check to make sure you still have the card. If you do, it's possible that a family member borrowed your card without permission. Or, the creditor could have made a billing error, in which case you'd
dispute the error with the credit card issuer. It's possible that your credit card number was stolen. In that case, you can report the theft to your creditor.
9. You check your credit report
Even if you think you know what's on your credit report, there could always be some erroneous entry. The good news is you have the right to
dispute credit report information that's inaccurate. If there's negative information and it's accurate, you can begin taking steps to
repair your credit. It will take some time, but better credit is worth it.
10. Opening the first post-holiday billing statement
Many people dread opening the first credit card statement that comes after the holidays (and sometimes even the second and third). Avoid this torture by contributing to a holiday fund a few months ahead of time (see
8 Ways to Avoid Holiday Debt). If you ended up splurging with your cards, don't worry. You can work to
pay off holiday debt in time to start a holiday fund for next year.
