| Chase has announced that they will be | | | | stepping away from it. While this is |
| ending the universal default penalties | | | | definitely good news for consumers, you |
| on their credit cards as of March 2008. | | | | still may have credit cards with |
| Citigroup has already announced they | | | | companies who have not discontinued use |
| would end this practice earlier in the | | | | of universal default clause. It is |
| year. | | | | important to know and understand the |
| Credit card companies have started using | | | | terms on your accounts so you will know |
| universal default penalties in the past | | | | if you could suffer because of this. |
| few years to raise interest rates on | | | | Another way to avoid the universal |
| potentially risky clients. By having a | | | | default penalty altogether is to make |
| universal default clause in your credit | | | | sure you are paying all you bills in a |
| card terms, you can suffer from a very | | | | timely manner. Pay at least $5 over the |
| high interest rate by paying late on | | | | minimum amount required in order to |
| another account, paying no more than the | | | | avoid being targeted as a "slow pay." |
| minimum amount several months in a row, | | | | Staying on top of your bills is the |
| or other similar behaviors. | | | | easiest way to avoid the highest credit |
| This type of penalty allows the credit | | | | card rates. |
| card company to raise your interest rate | | | | If you are having a hard time paying |
| for almost anything and makes it hard to | | | | your credit card bills, seek help from |
| protect against. Even if you are only | | | | an accredited credit counselor. The |
| falling behind on one credit card, all | | | | counselor can show you what options you |
| credit cards even with other companies | | | | have to get back on top of your credit |
| could be affected. | | | | card debt, including strategies you can |
| After receiving scrutiny because of this | | | | do on your own. |
| practice, the credit card industry is | | | | |