Universal Default
Hey Credit Card Users, ever hear of universal default? Hopefully you have and have not fallen victim to it!
Some credit card companies have been using this practice for years but its becoming a more common practice now.
When you look at a credit card offer, under other APRs' section, you might see the words Universal Default or just an asterisk (*) that indicates more info below - in really really small print. Look at the info and you'll see "All your APRs may increase if you default under any Card Agreement that you have with us because you fail to make a payment to us or any other creditor when due....".
What?!?
Basically, the credit card company is saying "If we check your credit report and see that you've made any payments late to anyone you owe - not just them - you're APR will go to the default rate." (which is usually above 20%) When you signed that credit card application, you gave the company permission to check your credit report any time they feel like. And they make so much money off of their customers that they can afford to check credit reports all they want!
Be aware of the different ways that credit card companies can make money off of you. Be aware of the credit card offer terms you are accepting when you decide to apply for that card. You can use credit and credit cards wisely, or you can be one of the millions of Americans that help make the credit card companies rich.
For more consumer tips, check out this site: http://www.consumeraction.gov/caw_identity_preventing.shtml Good info there!
Knowledge is Power!
