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