Late Payment on your Phone Bill Send Your Credit Card Interest Rate Soaring

Do you know what can happen when you miss a single credit card payment? Well, I can tell you that it’s nothing good. A missed credit card payment may not only affect the rates and payment amounts of the credit card on which you were late, but also all other creditors with whom you have connections. Many creditors will have a default (or two) standard financial charge paragraph that says something like:

“Financial charges for late payment or non-payment: If you do not pay at least the minimum monthly payment on the payment due date once during the introductory period, the introductory period will end and the rate standard shown in the table as of the first day of the billing cycle following your late payment. “
You may also be subject to what is now called a “universal default” clause. This little bit of language basically says that if you are late on ANY payment to CREATING, your interest rate on your credit card will change to the “penalty rate”. This penalty rate in 2005 was approximately 24.43%. This is certainly not a rate you would like and probably not something that you did not expect to pay simply because you asked for a new loan or delayed your bill for a few days. This penalty rate can be quite shocking because your creditor is under no obligation to inform you that it has been applied – and that you may not have missed a payment on this credit card. The high interest rate of 7.9% you have signed is not guaranteed and some creditors are trying to find a reason to increase it. Some of the events that can trigger this rise in interest rates are:
Forgotten mortgage payment
Telephone or missed public service payment
Lower your credit score
Request a new loan
Get a new credit card
Bounce a check
Exceed your credit limit
Many major credit card companies, such as Chase, Citi, American Express and Discover, have changed their policies to remove this universal clause, but you must check the specific terms of your credit card to make sure they are not endowed with it. program. You can take some basic steps to avoid a potential late payment trigger by doing the following:
Set up automatic projects for your monthly bill payments
Remember the time it takes to process your payment – it may take a few days for the payment to actually be registered with your creditor.
You can request changes to the payment due date to make it more convenient for you.
Just remember that most creditors get their money from the interest they charge you – and any reason to increase that interest rate will be put to good use. First try to pay with money – if you can not make your payments on time or if you risk being trapped in the spiral of debt, with endless interest payments

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