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