Universal Default Policy
Posted on November 24, 2007
Filed Under Advice, rates | Leave a Comment
You may think your credit card rate is safe as long as you make your payments. A Park Hill viewer found out that’s not necessarily the case because of something called the universal default policy.
Vera’s interest rate on her credit card jumped 15 points because she took over payments on her daughter’s credit card which was behind. To her credit card company it counted against her as her own late payment history. She says, “How can it be justified that a totally different credit card can DOUBLE my interest?”
You have to read the fine print to see if your company has the universal default policy on your account. Some credit card issuers will raise your interest rate an incredible amount if you’re late by even one day on any payment.
Your best defense if it happens to you is to take your business elsewhere. Tell the company you’re walking and often they’ll come back down.
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