5 Secrets a Credit Card Company Would Never Reveal

Since the inception of the CARD Act, credit card companies have lost profits because of new regulations about fees and extraneous charges. But never for a second should you doubt that these credit card powerhouses have accepted that fact and moved on.

In fact, soon after the CARD Act was put in place, consumer were already seeing some ways that credit card companies were getting around the loopholes in the rules.

Here are 5 secrets credit card companies know but wouldn’t likely reveal to it’s customers:

1. Yeah, You Have Options But Not Many

Card issuers are now required to give at least 45 days advanced notice if they plan to change any terms of your account. The cardholder has the right to reject any new changes to their account. However, the card company has the option to let the conditions ride out until the card expires and then just close the account altogether. Card companies state they are doing what they have to do to prevent risk Consumers are stuck having to pay off the entire balance as soon as possible and then have to choose between accepting the changes, like a higher interest rate or suffer the credit score affects of losing a credit account.

2. We Like You But We Hope You Mess Up

Credit card companies are making big-time profits on other people’s screw ups. Even with CARD Act rules in effect, creditors can still raise your interest rates of you violate the terms and conditions of the card. The change will not affect the balance you carry now but higher rates can be incurred for all purchases moving forward. Credit card companies used to monitor cardholder credit profiles only every three months. But now, profiles are reviewed on a more regular basis so credit card companies can protect themselves from risky customers.

3. Our Rewards Programs Probably Make You Spend More

In such a competitive industry, credit card companies need a lure to bring in new customers. Rewards programs are still a popular promotional tool companies use to attract consumers. However, because most card companies are cutting expenses, rewards are harder to come by. You may think you are getting a great deal on frequent flier miles but you forget how much you had to spend to get a few extra bonus points. Plus, the fees and interest rates on many of these cards actually cancel out any savings you may earn if you consistently carry a balance from month to month.

4. We’d Appreciate You Going Over Your Limits

Credit card companies now require a cardholder to ‘opt in’ to a plan that allows you to intentionally go over your credit limits. That means if you go to make a purchase but do not have enough credit but have opted in, the charge will be processed. If you don’t opt in, your card will be declined if you don’t have enough credit. However, it may seem great that you can make that extra charge, don’t be fooled into thinking its free. Credit card companies now charge up to $35 for each month you exceed the limit on your account. Even worse, credit card companies are offering the opt-in option promote it as a protection for cardholders when in reality it is just another way to secure extra profits.

5. We Can’t Solicit to Your Kids But We Can Still Get Them Signed On

Credit card companies are no longer allowed to gift promotional items in exchange for a person under the age of 21 to sign up for a credit card. However, college students and their parents are likely to need credit cards for away-from-home emergencies. While kids under 21 can’t sign up, credit card companies know parents still can as co-signers.

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