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

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
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:

Mastercard Set to Buy Ethoca
Mastercard Set to Buy Ethoca

Posted: March 20, 2019

Credit Card security is something that everyone is mindful of these days, and in keeping with this theme, Mastercard is set to buy Ethoca, a company that specializes in helping both retailers and card issuers detect and resolve digital… Continue reading

American Express Set to Buy Lounge Buddy
American Express Set to Buy Lounge Buddy

Posted: March 19, 2019

American Express is well known for their Centurion Lounge network, and now they are upping the ante with the purchase of LoungeBuddy, a digital platform designed to help people find and book time in airport lounges around the world. While… Continue reading

The New Luxury Card App is Launched
The New Luxury Card App is Launched

Posted: March 18, 2019

Luxury Card has rolled out their new app, giving cardholders access to a variety of features and benefits including, finding one of a kind experiences and chat in real time with Luxury Card Concierge Specialists. These specialists can help… 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 unlimited 1.5% cash back on every purchase, every day
For Average, Fair, Limited 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!