Credit card universal default clause

There is a new game in town, and it will bite you hard if you are not aware. By this point in the book, you probably know that if you pay credit card bill late, you will have a late fee, it will affect your credit score, and the map are behind you of increasing interest rates on you.

Well, it seems that the sentence is no longer sufficient. Nearly 40% of all credit cards now carry a clause universal default. With a universal default clause, not only your credit card company to increase your interest rate if you are in arrears, they also increase your interest rate if you are late for other companies! And in May this not happen unless you pay another credit card company late, but if you pay your car loan, mortgage, or even the end of your phone bill!
It is in all the small print of your credit card, the paper that nobody ever reads, but should. The credit card issuers' theory is that, while May had never been in arrears, you are in fact a late payer, and the end are bad payers. They think, why wait to get burned by tomorrow if you can start to bear risk at the moment? This, of course, has always been the case when the source apply for credit, but the idea to do mid-term, and when you've never made late payment by the issuer in question, is fairly new.

Credit cards with universal default clauses to keep a tight control on your credit report, you should also do. And if they see something they do not .. . BAM! They can and your interest rate overnight, without warning. The average "default" in 2005 was 24%. As the Prime lending rate has increased, this figure is likely to be even higher today.

Always be aware if you have a card with this feature. If you do, to turn away from him through a balance transfer. Also, check your statements every month. Do not just watch your account balance, view your interest rate as well. May it has risen and you do not know.