FinallyBoughtDVC
<font color=blue>That reminds me of the first time
- Joined
- Feb 24, 2005
- Messages
- 1,165
A while ago, there was a show on Dateline, 20/20, one of those shows, that said that almost all the major banks offering credit cards have stuck little "extras" in the fine print. One of those is that even if your payment is one day late, they can increase your rate substantially. 
In addition, if you carry more than one card, your other card companies may also have the right to increase your interest rate because of a late payment on another account, even if your account with them has never had a late payment.
Because of the low interest rates and the 0% interest deals many of these copmanies use as a come on, the banks need to make up the income elsewhere.
A few other things the show pointed out:
1. In addition to increasing the interest rate, they will tack on a substantial late fee.
2. Credit card companies will now routinely approve charges which push a balance over the credit limit (where before they would deny the charge or increase the limit) in order to charge an additional "over the limit" fee.
3. One late payment, of even one day, can nullify any promotional interest rate and increase it to the maximum.
4. If a credit card bank determines that you are using too much credit, they have the right to increase your interest rate as well, because you are then considered a higher risk.
I know it's lousy, but it's the way it is.
We just pay off our balances in full each month, online, about a week ahead of the due date. It's not a bad idea to set up automatic payments of at least your minimum amount due, just in case something happens, you forget, time gets away, etc. At least that way, the bare minimum was paid and you won't be penalized for being late.
The best thing about doing it online is you can print out the confirmation which shows exactly when you made the payment. When you mail a payment, you have no proof that it was sent on time. And, it shows up as paid the next morning.
I hope this info is helpful.
In addition, if you carry more than one card, your other card companies may also have the right to increase your interest rate because of a late payment on another account, even if your account with them has never had a late payment. Because of the low interest rates and the 0% interest deals many of these copmanies use as a come on, the banks need to make up the income elsewhere.
A few other things the show pointed out:
1. In addition to increasing the interest rate, they will tack on a substantial late fee.
2. Credit card companies will now routinely approve charges which push a balance over the credit limit (where before they would deny the charge or increase the limit) in order to charge an additional "over the limit" fee.
3. One late payment, of even one day, can nullify any promotional interest rate and increase it to the maximum.
4. If a credit card bank determines that you are using too much credit, they have the right to increase your interest rate as well, because you are then considered a higher risk.
I know it's lousy, but it's the way it is.
We just pay off our balances in full each month, online, about a week ahead of the due date. It's not a bad idea to set up automatic payments of at least your minimum amount due, just in case something happens, you forget, time gets away, etc. At least that way, the bare minimum was paid and you won't be penalized for being late.
The best thing about doing it online is you can print out the confirmation which shows exactly when you made the payment. When you mail a payment, you have no proof that it was sent on time. And, it shows up as paid the next morning.
I hope this info is helpful.
I've earned enough that we are thinking of another trip in the fall that will be almost paid in full! 
