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IF call centers are allegedly being used by loan and financing companies and credit providers to get a wider range on consumers, it is ironic that call center workers themselves are now among the primary target USERS of credit cards.
Due to their irregular shifting working schedules, call center agents may find it useful to have a credit card for dining, shopping, and paying utility bills. Banks and financing institutions are offering a wide-variety of debit and credit cards for different user-levels.
A word of caution, however, is necessary to wouldbe credit card applicants. Here are a few guidelines you should know before getting a credit card:
READ THE FINE PRINT
Wonder why credit card companies print their application (and agreement) forms in very tiny letters? Other make them too lengthy and drown in too many technical terms it bores yhou to death to read them all.
If you are not clear on what the application form says, be prudent to scrutinize the credit card contract even before considering applying for the service. Read the fine print and understand them well. If y ou’re confused by the fine print (as many are), call the credit card company and ask for clarification. If possible, request for ‘legal’ size copy of the contract.
Some credit card providers offer minimal or no interest at all on the first year of use. Do not get duped into signing in haste just because of the good offers. Clarify every item on the contract, most importantly; what specific circumstances will affect your interest rate. You might be trapped into big debts.
PAY ON TIME
Pay all your bills on time. If you're having trouble with your credit card payments, at the very least, strive to make your minimum payment on time. This will avoid interest rate from getting compounded. If you're struggling to make monthly payments on your other bills, like utilities, car payments, or mortgage payments, call your lender to see what options it might be able to offer to alleviate your difficulties. It might be able to adjust your monthly payments so that they're more manageable.
BILLING SERVICE
There are times when the credit bills come late. Later on, you'll find out that you have been charged with late payment fee and your interest rate has been compounded exponentially. When you complain that it is not your fault, the credit company will argue that it is your responsibility to know your "due date." This again needs clarification. The fault of late payment due to late billing cannot be blamed on you.
When accepting a late billing from a courier, make sure you put the date of acceptance with your signature. aThough it is not your inherent duty to inform the credit company that your bill came late, it is advisable that you do. You may even file a complaint about it on the ground that it will cost you more money. That way, it will show them that you are in good faith.
AND ImM
UNIVERSAL DEFAULT CLAUSE
If you're late with a payment, the credit card company will charge you a late payment fee in addition to raising your interest rate. But did you know that they can raise your interest rate if you've made a late payment on any of your other cards, including those issued by other companies? Not only that, your interest rates can skyrocket to 30 percent or more if you make a late payment on your car loan, mortgage, or even your phone bill!
How can they do that? Is that legal? you ask. The answer is found in the very fine print of your credit card agreement, and it's called "Universal Default Clause" (UDC).
Generally, a UDC states that a creditor reserves the right to penalize you with an increased interest rate if you're late - that is, in default - of a payment to other creditors or utility payments. They justify this practice because, in theory, if you pay any of your obligations late, you pose a greater credit risk and are less likely to pay your debt. So, if you're looking to open a new credit card account, be sure to choose one without a UDC.
WRITE TO CONGRESS
As a consumer, you may take action by letting Congress know that you want laws to protect your rights and prohibit many unfair practices within the credit card industry.
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