Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
What Did Crude Oil - Platinum Link Tell Us Last Week? - 17th Jul 18
Gold And The Elusive Chase For Profits - 17th Jul 18
Crude Oil May Not Find Support Above $60 This Time - 17th Jul 18
How Crazy It Is to Short Gold with RSI Close to 30 - 16th Jul 18
Markets Pay Attention Moment - China’s Bubble Economy Ripe for Bursting - 16th Jul 18
Stock Market Uptrend Continues, But... - 16th Jul 18
Emerging Markets Could Be Starting A Relief Rally - 16th Jul 18
(Only) a Near-term Stock Market Top? - 16th Jul 18
Trump Fee-Fi-Foe-Fum Declares European Union America's Enemy! - 16th Jul 18
US Stocks Set For Further Advances As Q2 Earnings Start - 15th Jul 18
Stock Market vs. Gold, Long-term Treasury Yields, 10yr-2yr Yield Curve 3 Amigo's Update - 15th Jul 18
China vs the US - The Road to War - 14th Jul 18
Uncle Sam’s Debt-Money System Is Immoral, Tantamount to Theft - 14th Jul 18
Staying in a Caravan - UK Summer Holidays 2018 - Cayton Bay Hoseasons Holiday Park - 14th Jul 18
Gold Stocks Summer Lows - 14th Jul 18
Trump US Trade War With China, Europe Consequences, Implications and Forecasts - 13th Jul 18
Gold Standard Requirements & Currency Crisis - 13th Jul 18
Focus on the Greenback, Will USD Fall Below Euro 1.6? - 13th Jul 18
Stock Market Outlook 2018 - Bullish or Bearish - 13th Jul 18
Rising Inflation is Not Bearish for Stocks - 13th Jul 18
Bitcoin Picture Less Than Pretty - 13th Jul 18
How International Observers Undervalue the Chinese Bond Market - 13th Jul 18
Stocks Trying to Break Higher Again, Will They? - 12th Jul 18
The Rise and Fall of Global Trade – Redux - 12th Jul 18
Corporate Earnings Q2 2018 Will Probably be Strong. What This Means for Stocks - 12th Jul 18
Is the Relative Strength in Gold Miners to Gold Price Significant? - 12th Jul 18
Live Cattle Commodity Trading Analysis - 12th Jul 18
Gold’s & Silver’s Reversals’ Reversal - 12th Jul 18
The Value of Bitcoin - 11th Jul 18
America a Nation Built on Lies - 11th Jul 18
China, Asia and Emerging Markets Could Result In Chaos - 11th Jul 18
Bullish Gold Markets in the Big Picture? - 11th Jul 18
A Public Bank for Los Angeles? City Council Puts It to the Voters - 11th Jul 18
Yield Curve Inversion a Remarkably Accurate Warning Indicator For Economic & Market Peril - 11th Jul 18
Argentina Should Scrap the Peso and Dollarize - 11th Jul 18
Can the Stock Market Close Higher For a Record 10th Year in a Row? - 11th Jul 18
Why Life Insurance Is A Must In Financial Planning - 9th Jul 18
Crude Oil Possibly Setting Up For A Big Downside Move - 9th Jul 18
BREAKING: New Tech Just Unlocked A Trillion Barrels Of Oil - 9th Jul 18
How Trade Wars Penalize Asian Currencies - 9th Jul 18
Another Stock Market Drop Next Week? - 9th Jul 18
Are the Stock Market Bulls Starting to Run? - 9th Jul 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

A dozen devious credit card cons

Personal_Finance / Credit Cards & Scoring Mar 30, 2007 - 11:01 PM GMT

By: Fool.co.uk

Personal_Finance A recent review of UK credit cards by fool.co.uk has identified no less than a dozen devious measures by banks to ensnare unsuspecting customers. These traps are designed not only to heap misery onto people in debt, but are also devised to ambush sensible card users.

David Kuo, Head of Personal Finance at fool.co.uk , says: “Credit-card companies are increasingly targeting rate tarts and convenience users. In other words, they are picking on sensible customers who always pay their outstanding credit-card debts in full.


“The tactics used include the magically appearing annual membership fees, charges for pseudo-cash products such as credit-card cheques, and hidden catches in balance-transfer deals.

“The best way to combat these offensives is to read any material sent to you by your card provider to ensure that no changes to the terms are made without your knowledge. Changes can happen at any time. I suspect the next move may be the sliding credit line where customers' credit limits are lowered once they reach it.

“Credit-card customers are regularly reminded by banks to take care against fraud. Ironically, the people that consumers need to be protected from most are people they are expected to trust – the card issuers themselves.”

12 credit card tricks customers should look out for:

1. The Five Pound Card Trick

Instead of paying a minimum percentage of a balance each month, some credit cards now set the minimum monthly repayment at the monthly interest, plus premiums for payment protection insurance, plus fees, plus £5. The upshot is that your outstanding debt is whittled away at just £5 a month.

2. Negative Payment Hierarchy Hoax

The least expensive debt is paid off first, meaning that the more expensive ones continue to accrue more debt interest for longer. It is tantamount to trying to run up a down-escalator, which will leave customers out of breath and out of pocket.

3. Balance-Transfer Con

Watch out for lenders that class balance-transfer fees as a purchase on 0% balance-transfer deals. This means the fee will not come under the 0% deal, but will instead be subject to interest at the purchase rate.

4. Too-good-to-be-true Typical APRs


Only the most creditworthy applicants will ever get the lowest advertised interest rates. Although current rules state that two out of three borrowers must be offered the typical APR, this only applies to approved borrowers, not the number of people who apply.

5. Congratulations! We've Upped Your Credit Limit

A credit limit is not a debt target, though it is tempting to see it as such. Consequently, the greater your access to credit, the greater may be the temptation to spend.

6. The Insurance Maze

Insurance comes in various guises, not just the high profile dodgy ones. Steer clear of rip-off Payment Protection Insurance (PPI) and Credit Card Repayment Protection (CCRP).

7. Late-payment Sting

Late payers not only face penalty fees but banks can also rescind any 0% deals you may have signed up to.

8. Monthly Interest-rates Ruse

Don't be fooled by monthly rates: a monthly rate of 1.5% might not sound high, but it compounds up to a whopping 19.6% APR.

9. Annual-fee Manoeuvre

Credit card fees are making a comeback, with fees from £10 to £275.

10. Cash-withdrawals Wheeze


A typical charge is 2.5% of the withdrawal amount and a minimum charge of £2.50. So, if you withdraw a tenner, you'll be charged £2.50, which is equivalent to a 25% charge. Withdrawals also attract interest at even higher than standard rates for purchases.

11. Credit-card Cheques Trap


Cheques sent to you by credit-card companies attract interest at the standard rate for cash withdrawals, plus a handling fee of up to £50. Also, like cash withdrawals, you don't get an interest-free period.

12. Gambling-fee Fleece

Card firms are increasingly cracking down on punters who use their plastic to make online wagers. Previously, card issuers treated these transactions as purchases, but you're likely to find that they're now treated as cash withdrawals.

By Sonia Rehill
soniar@fool.co.uk
http://www.fool.co.uk


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules