November 25, 2004 05:57 AM
One Late Payment Can Hit Finances Hard
Excerpt: Almost half of all credit cards have so-called universal default penalties, which allow the credit-card company to increase your interest rate if it discovers a late payment on your credit report for any credit-card account or loan or other debt involving any other company. It doesn't matter if you've never made a late payment to that particular company.
One late payment on your credit card can pack a pretty hard punch. Not only with fees and rate hikes on the card in question, but also with penalties on your other credit cards.
Almost half of all credit cards have so-called universal default penalties, which allow the credit-card company to increase your interest rate if it discovers a late payment on your credit report for any credit-card account or loan or other debt involving any other company. It doesn't matter if you've never made a late payment to that particular company.
This year, 44 percent of credit cards have universal default penalties, reports Consumer Action, a San Francisco-based research group. And the number is increasing -- only 39 percent of cards had them in 2003.
Penalty rates can easily top 29.99 percent compared with the average annual rate of 14 to 16 percent. These penalties go into effect when you are perceived as a delinquent borrower, usually after you make a late payment or go over your credit limit.
You might also incur penalties if your credit score drops, warns Experian Consumer Direct, one of three credit bureaus that calculate your credit score. Your credit score is an analysis of your past credit history that is used by lenders to figure out how much of a risk you are.
READ FULL STORY ...
7 Ways to Improve Your Credit Score (November 25, 2004)
While credit opportunities are opening up for consumers, poor credit ratings are blocking the doors of opportunity. Lenders are stopped when loan applicants can’t show good credit ratings. It behooves consumers to know the score when it comes to credit rating. Mortgage company decisions, as ...
Free Credit Report Details Announced (November 25, 2004)
Consumers in some parts of the United States will be entitled to one free credit report each year beginning Dec. 1, using a Web site called AnnualCreditReport.com, the nation's credit bureaus announced Tuesday. Consumers can also call a toll-free number or mail a written request ...
Free Credit Reports Are On The Way (November 23, 2004)
Millions of consumers for the first time will be able to get free copies of their credit report starting next week. Beginning Dec. 1, consumers in 13 Western states will have the right to order a free credit report annually from each of the three ...
Card Debt (November 22, 2004)
While 185 million Americans have at least one credit card, only 144 million consumers have at least one bank credit card. Over the past 10 years the average revolving bank credit card balance per carded American household has more than doubled from $2,942 to $7,519 ...
Read all 31 posts in the same category of Credit/Credit Card:
Citigroup Plans Platinum-Card Rival -
Feb 10, 2005
Watch Spending Habits To Keep Debt From Going Bad - Feb 07, 2005
The Downside of Cash Advance Checks - Feb 07, 2005
Cash Is Favored Over Trip In Card Loyalty Plans - Feb 04, 2005
Younger Americans Going Deeper Into Debt - Jan 23, 2005
Capital One Sued Over 'Deceptive' Ads - Jan 01, 2005
Frequent-Flier Cards Delay Fee Collection - Dec 27, 2004
It Pays To Surf For Auto Loans Online - Dec 27, 2004
Perishable Credit Card Numbers Take The Fear Out Of Web Shopping - Dec 27, 2004
American Express, Citi Ink Deal - Dec 26, 2004
Citigroup Says It Will Issue American Express Cards - Dec 17, 2004
MBNA Pitches Rival Visa Card - Dec 14, 2004
Credit Card Loyalty Put to the Switch Test - Dec 09, 2004
Credit Cards Offer Safety In Buying Online - Dec 06, 2004
How to Deal With Your Debts - Dec 04, 2004
FACTA & Your Credit - Dec 03, 2004
Warning On Internet Loans - Dec 02, 2004
High Court Sets Truth In Lending Limit - Dec 02, 2004
Free Credit Reports May Reveal Surprises - Dec 01, 2004
Free Credit Reports Coming, With Pitches - Nov 30, 2004
Teens Need To Embrace Identity Protection - Nov 30, 2004
What to Do About Your Credit - Nov 29, 2004
A Generation Weighed Down By Debt - Nov 28, 2004
7 Ways to Improve Your Credit Score - Nov 25, 2004
Free Credit Report Details Announced - Nov 25, 2004
Free Credit Reports Are On The Way - Nov 23, 2004
Card Debt - Nov 22, 2004
Soaring Interest Compounds Credit Card Pain for Millions - Nov 20, 2004
Gas Cutter - Nov 02, 2004
Payment Rates - Nov 02, 2004
Watch Spending Habits To Keep Debt From Going Bad - Feb 07, 2005
The Downside of Cash Advance Checks - Feb 07, 2005
Cash Is Favored Over Trip In Card Loyalty Plans - Feb 04, 2005
Younger Americans Going Deeper Into Debt - Jan 23, 2005
Capital One Sued Over 'Deceptive' Ads - Jan 01, 2005
Frequent-Flier Cards Delay Fee Collection - Dec 27, 2004
It Pays To Surf For Auto Loans Online - Dec 27, 2004
Perishable Credit Card Numbers Take The Fear Out Of Web Shopping - Dec 27, 2004
American Express, Citi Ink Deal - Dec 26, 2004
Citigroup Says It Will Issue American Express Cards - Dec 17, 2004
MBNA Pitches Rival Visa Card - Dec 14, 2004
Credit Card Loyalty Put to the Switch Test - Dec 09, 2004
Credit Cards Offer Safety In Buying Online - Dec 06, 2004
How to Deal With Your Debts - Dec 04, 2004
FACTA & Your Credit - Dec 03, 2004
Warning On Internet Loans - Dec 02, 2004
High Court Sets Truth In Lending Limit - Dec 02, 2004
Free Credit Reports May Reveal Surprises - Dec 01, 2004
Free Credit Reports Coming, With Pitches - Nov 30, 2004
Teens Need To Embrace Identity Protection - Nov 30, 2004
What to Do About Your Credit - Nov 29, 2004
A Generation Weighed Down By Debt - Nov 28, 2004
7 Ways to Improve Your Credit Score - Nov 25, 2004
Free Credit Report Details Announced - Nov 25, 2004
Free Credit Reports Are On The Way - Nov 23, 2004
Card Debt - Nov 22, 2004
Soaring Interest Compounds Credit Card Pain for Millions - Nov 20, 2004
Gas Cutter - Nov 02, 2004
Payment Rates - Nov 02, 2004
Related Sites
• Structured Settlements
www.setcap.com - cash for structured settlements, sell annuity, lottery winnings, and more.
• Personal Finance: Finance News Today provides money saving tips, news, and articles on personal finance issues like insurance, real estate, college planning and much more.
• Compare all our 0% Credit Card UK against our 0% balance transfers and cash back deals.
• Browse through our Credit Cards deals and apply online.
• financial tip - financial tips article and more.
• Arizona llc - incorporate a arizona llc. they offer solutions for limited liability company asset protection in arizona and california. incorporation services are provided online with 24 hour filings and expedited approvals. www.paralegal-plus.com for cpa lawyers.
• Credit Repair
repairmycreditnow.com/Credit_Repair_Advice.htm - repair my credit now credit services offers credit repair, restoration and education through our exclusive "v" phase process â„¢.
• Citibank Home Equity Lines of Credit: Rates as low as Prime - 0.50% variable APR for Life, currently 5.50% variable APR.
• Day Trading - day trading signals for active stock and options traders.
• Ken Langone - ken langone: make my day
• Credit Repair - repair my credit now credit services offers credit repair, restoration and education through our exclusive "v" phase process â„¢
• Online Option Trading - oexoptions is an oex online stock option trading company offering a free 15-day trial for all new customers.
• fix bad credit
Want to See Your Ads Here? Claim Your Ad Space at Personal Finance Weblog by Writing to Webmaster. Starting at $25/month, see your text ads in more than 2,000 indexed pages at PFBlog, the Best Personal Finance Blog, or MM Money, MM's Daily Personal Finance Readings. Full Rate Card Available Here.
• Structured Settlements
www.setcap.com - cash for structured settlements, sell annuity, lottery winnings, and more.
• Personal Finance: Finance News Today provides money saving tips, news, and articles on personal finance issues like insurance, real estate, college planning and much more.
• Compare all our 0% Credit Card UK against our 0% balance transfers and cash back deals.
• Browse through our Credit Cards deals and apply online.
• financial tip - financial tips article and more.
• Arizona llc - incorporate a arizona llc. they offer solutions for limited liability company asset protection in arizona and california. incorporation services are provided online with 24 hour filings and expedited approvals. www.paralegal-plus.com for cpa lawyers.
• Credit Repair
repairmycreditnow.com/Credit_Repair_Advice.htm - repair my credit now credit services offers credit repair, restoration and education through our exclusive "v" phase process â„¢.
• Citibank Home Equity Lines of Credit: Rates as low as Prime - 0.50% variable APR for Life, currently 5.50% variable APR.
• Day Trading - day trading signals for active stock and options traders.
• Ken Langone - ken langone: make my day
• Credit Repair - repair my credit now credit services offers credit repair, restoration and education through our exclusive "v" phase process â„¢
• Online Option Trading - oexoptions is an oex online stock option trading company offering a free 15-day trial for all new customers.
• fix bad credit
Want to See Your Ads Here? Claim Your Ad Space at Personal Finance Weblog by Writing to Webmaster. Starting at $25/month, see your text ads in more than 2,000 indexed pages at PFBlog, the Best Personal Finance Blog, or MM Money, MM's Daily Personal Finance Readings. Full Rate Card Available Here.
