A few ways in which credit card companies still... - Other News


Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » A few ways in which credit card companies still exploit customers

A few ways in which credit card companies still exploit customers

A few ways in which credit card companies still exploit customers
The content is accurate at the time of publication and is subject to change.

Credit card issuers are still exploiting the customers in many ways. Whatever little time is left for them to implement their “anytime, any reason”, strategy, they are using it to alter interest rates. Rates as high as 30%, which were previously unheard of, have been the norm for some credit card issuers. It is not just the APR on the credit cards which are significantly increasing. The penalty rates on many of the credit cards are also rising. For example, it is not uncommon to find events like being late for payment by one day, leading to a hike in the interest rates. Unfortunately credit card customers, who saw their APR going up as a penalty before the new reforms were introduced, wouldn`t benefit from the new rules at all. The rate changes in those cases seem to be permanent.

Credit card issuers are reducing credit limits without giving any heads-up to the customers. Even credit lending standards have tightened, which means getting a new credit card is very difficult. The credit score requirements for prime customers have also increased. In fact, there has been a steep rise in fees for cash advances and balance transfers. As per a new study, although only 20% of the credit cards have an annual fee, it is likely to go up in the near future. 40% of banks have or will increase the annual fees in the future too.

Credit card issuers are also converting the APR to variable ones, when the index rate is very low and about to go up. There are additional floors to these variable rates, so that rates can only go up but never come down. Credit card issuers are also changing the whole fee structure and definition. For example, customers are being charged interchange fee even when the international transaction is in dollars. Rewards programs are being changed too; with cash back offers being reduced and thresholds to get free flights getting tougher. In fact, a lot of new types of fee have been added. Accounts are also being closed without any notice. This means you could be denied a purchase and then realise that your credit card has been cancelled. Most credit card companies are using high fees and fine print as their primary weapons.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Capital One Partners Up With Airlines

Posted: December 12, 2018

Capital One has partnered up with 14 airlines so that Venture and Spark cardholders can now use miles to pay for their flights. What is the transfer ratio? All of the carriers that have partnered up with Capital One, except for Emirates ... Continue reading
Holiday Shopping is Trending

Posted: December 11, 2018

Shopping is definitely in style this holiday season with consumers, according to the new TD Bank Holiday Retail Report, on average they will be spending $530 on gifts. What are the trending gift-giving categories this season? Gift cards ... Continue reading
Some Upgrades Coming for American Express Business Platinum Cardholders

Posted: December 10, 2018

In 2019 people with the Business Platinum Card will be able to take advantage of some upgrades arriving with the new year. These new benefits are designed to boost productivity, as well as give cardholders more perks when traveling for ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!