February 10,2009

• Fighting Credit Card Changes, Pt.4
    -- Final Tips...

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  Final Tips: Here are some general tips that might be helpful:

  • Paying on time: Absolutely essential. Missing one credit card payment can make or break you. This changes with the new FICO Rules but, they are only just starting to be implemented now. Portions of the credit card industry may be slow to conform. Don't risk it!

  • Paying over the minimum: Good idea for two reasons but not the obvious one. No evidence has been found about this helping one's FICO Score in fact, this detail isn't even forwarded to the credit reporting bureaus. But most of the credit card lenders have access to this information even if they don't make use of it. If you call them and need a favor (like erasing a ‘missed payment' from the books), you gain much credibility and forgiveness if you point out your responsible way of paying your credit card account over the minimum due. They can look that up in their system and will be much more willing to erase the ‘Universal Default' (financial felony where everyone you ask for credit from any source will condemn you) from your record. It could also save you $98 in fees and penalties, as well (it did for me).

  The other benefit is that you can reduce credit card finance charges greatly. Minimums, in the past, were set up to where you only pay interest for the rest of your life without ever paying off the debt. That's changing now, though.

  • At all cost, avoid Universal Default: ‘Late credit card payments' and ‘exceeding credit limits' are your greatest dangers here.

  • Hidden fees: ‘Balance Transfer', ‘ Special Transfer' (deceptive snare used for credit card promos), ‘Membership' (Annual of otherwise), 'Monthly'and ‘Maintenance' fees, just to name a few...watch out for them.

  • Expiring promo dates: They'll gitcha!

  • Sneaky changes: Read the pg. 12 footnotes... Only kidding but, do understand the asterisks (‘**'). (also known as a ‘smiling salesman emoticon'). Scan all credit card notices and statements carefully for change notifications.

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