Read the fine print to avoid credit card woes As big banks continue to post multimillion-dollar writedowns to cover mortgage loan losses and other bad investments, credit-card holders are increasingly getting squeezed.
Card issuers such as American Express have started taking a closer look at the math that determines how much credit is available to each customer, and some are cutting their credit lines to keep more money in house. Card issuers want to keep default rates as low as possible to protect their profits. Credit-card companies retain the right to change the terms of their agreements, particularly if a customer defaults. By law, issuers must inform cardholders of any changes to their account. The problem is that while most consumers receive notices as part of their monthly statement, many cardholders focus on the payment portion and either ignore or discard the message inside. Consumer advocates recommend consumers read all the fine print in their statements and in letters from credit-card companies. They also argue that the issuers' seemingly abrupt credit limitations can unnecessarily cut off consumers' spending power. And, by changing those terms without looking at the customer's circumstances, credit-card companies are freezing customers' access to credit they had been awarded. In order to prevent credit limit being reduced, consumers should pay the credit-card bill on time. Always pay more than the minimum requirement. Although it seems like easy free money, credit cards are actually short-term loans that often have steep monthly interest charges. Repay as much as you can quickly to get that loan off your books. Also, cardholders should never use more than 50% of their available credit, even when money is tight. These days, appearing fiscally irresponsible can lower your credit limit. -- Visit site at – http://investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Forums- http://forums.investorline.co.in/ Iwebs Open Source Web Publishing Platform - http://webs.investorline.co.in/iwebs/ --~--~---------~--~----~------------~-------~--~----~ Get latest market updates & search internet right from your browser-download our toolbar here- http://investorline.ourtoolbar.com/ Visit our site at – http://investorline.co.in/ Newsroom: http://newsroom.investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Journal - http://research.investorline.co.in/ Newscatcher- http://catcher.investorline.co.in/ Interested in Financial Planning-Let us Contact you- http://spreadsheets.google.com/viewform?key=pb_z4f1_zGMg4iBBFT3-SWQ&email=true If you like the site then promote it here- https://www.freetellafriend.com/tell/?url=http://investorline.co.in/blogs/news Create your own free blog on- http://investorline.co.in/blogger Visit this group at http://groups.google.com/group/india-investor -~----------~----~----~----~------~----~------~--~---
