What Can Credit Card Companies do to me?

What your Credit Card Company can do to you.

     Everyone knows that credit cards can hurt you in the long run if you are not paying them off each month. We also know how easy it can be to run them up thinking you have enough money at the end of each month then only find out you are a little behind. This in turn can turn into you not paying out the full amount and thus leaving the remaining owed to accumulate interest payable. But there are also some other things that you need to be aware of that your credit card company could do that could sting your bank account.
     Did you know that your rates could be raised? Rates seemingly have increased over the years to almost loan shark rates. If you are counting on paying off a partial amount on what you owe, you could be in for a shocker if the rates jump up a few percentage points. Now there are limits thanks to the CARD Act that President Obama signed on May 22nd 2009. Thanks to this act, existing balances will not be allowed to have their rates raised but this will not pertain to interest for late payments. New comers to the card will also have benefits of certain rate freezes if you are behaving and paying back your bills before 60days. Credit Card companies may also try to see if there are other hoops to jump through to squeeze a penny out of you if possible such as still being able to simply raise their rates on new purchases or have new fees attached.
     When you sign up for a credit card, there is usually a lot of fine print, print that could contain new clauses to make you pay more fees. Some of the fees credit card companies use or could use are annual fees and even inactivity fees. By making everyone paying a $99 annual fee, they make sure they make money off of card holders who are even paying off their bill completely each month. Currently there is some talk that the government should regulate and monitor some of these fees to ensure a fair playing field for all.
     I personally prefer credit cards with rewards attached to them, travel reward miles, cash back, and others. I figure, if you are paying for products you need anyways, you can put them on your credit card and actually over time earn enough to get something pretty decent out of it. The credit card companies are banking on you going over the amount you can comfortably payback each month so they can charge you with interest to make up for these expenses. Another thing they can also do is offer fewer rewards. Perhaps it's a reduction in the cash back % or having to spend more to get a reward mile. Or even removing them if your payment if late.
     So perhaps you are one of those people though your money out the window periodically and paying only the minimum payment owed on your credit card. What a credit card company can do is increase the minimum payment owed each month. In doing so, they are reducing their risk of not getting paid back but also making harder for you to just float on the bottom and pay off a low amount each month. It is true that if you pay off your credit card bill entirely that the company that issued it to you will actually make more do to interest etc however, with bankruptcies and debt consolidation or debt settlement out there it is possible they may only get paid back a fraction of what you really owe them. Raising the minimum helps to cover their back in these cases. It is also said that the new CARD Act will curb the companies from increasing the minimum to a maximum of 100%.
     It is best to be aware of any fine print when signing up and ask questions if need be. This way you are better informed about what may lie ahead for you. Also be aware that there could be other things that could be implemented by the credit card company in any fine print when signing up. Also look around and compare what each has to offer. But above all I would always recommend. Treat a credit card as cash. Don't go above what you cannot afford to pay that day. Keep your receipts in a place and or even write down the amounts at the end of each day so you can see whenever you want exactly where you are financially. Keep a mental note of how much you owe if you are going to pay with it. That way you can keep the credit card companies at bay and avoid paying any undo interest and fees.