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| Hidden Dangers of Credit Cards |  Student credit cards are a valuable mean in modern society, and have many advantages. Nevertheless, credit cards have dangers as well, and if they are used poorly or you are uninformed of the potential problems, you could end up loosing lots of money.
Here are some of the hidden dangers of credit cards, and ways to avoid them:
Default penalties
In the case you make late payments it could denote that your interest rate and credit limit are affected. Even if your payment credit card’s history is perfect, late payments can give the credit card company the reason to charge higher rates. It is better for you to pay all bills on time, to avoid this.
Short grace periods
A lot of cards used to have grace periods, denoting the period which your transactions do not collect interest about 30 days. Nowadays, such grace periods are getting smaller and many companies only propose grace periods of 20 or even no period at all. This means that your balance will begin to accumulate interest after you buy something. That is why you will still pay interest even if you pay the bill back at the end of the month completely.
Late payment fees
If you are even 1 day late with payment of your bill, then you will acquire heavy late fees. If the case you late with payment more than once or twice then your interest rate can also rise. Be sure that your payment was send and arrived in time.
Over-limit fees
Another high costs you can face with, are over limit fees. If you are near the edge of your credit limit, when buying something, your interest payments possibly will push you over your limit. These fees can almost immediately add up. Make sure you are familiar with the cost of late payment and over-limit fees, and try to stay well under your limit if possible.
Mandatory arbitration
It is one thing you should pay attention to when you sign a credit card agreement. This denotes that if anything goes wrong with the activity of a credit card company, you cannot take them to court. Signing the agreement you agree to settle all matters by arbitration. This gives credit card companies the possibility to act badly and not to go to court. If the mandatory arbitration is included in you’re the agreement, make sure you think about the consequences of signing.
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