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3 things credit card companies do not want you to know

If you are like many Americans, you probably rely on your credit cards regularly to get through the month. It can prove all too easy to pull out the plastic for purchases, because somehow, using that card makes it seem less like spending than when you hand over actual cash.

Perhaps this is why so many Americans find themselves drowning in overwhelming credit card debt, and that is just how the credit card companies like it. The longer you remain in debt, the more money they make in interest, and the primary  goal of these companies is a simple one: to make money. They often do so using sneaky measures, too. Here are several important things your credit card companies do not want you to know.

Smaller minimal payments mean big money for them

Once upon a time, many credit card companies expected you to pay off at least 5 percent of your balance each month. There was a problem with that, though. People were paying off their balances too quickly, and the credit card companies were not making enough. So, many companies lowered that amount to only 2 percent so they can make considerably more in interest over time.

“Fixed” rates can fluctuate

Do you read all the fine print that comes along with a new credit card? If the answer is no, you are not alone. Often, buried somewhere within it is language that does allow the interest rate to rise, provided the company informs you with a letter at least 15 days before the increase.

One late payment can lead to two penalties

Many people are late paying credit cards at some time or another. Sometimes, it happens because of a lack of funds, and other times, it happens because you might simply forget to process the payment on time. In addition to the late fee, you may also see your interest rate increase due to your late payment – and the rate hike may be permanent.

Remember, the end game of credit card companies is always to make money. Thus, you should never assume they are making moves that are in the best interest of you, the consumer. 

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