The credit card holders sign up for a credit account with a 8.9% interest rate and then realize that your interest rate has hit 27.4%. Why? You know your credit score affect credit card rates that you qualify. But did you know that a little clause in the fine print of credit card terms and agreements, called "Universal Default Penalty Clause" may mean that you're already paying a higher interest rate than when you signed up for credit card? What does this print mean to you? If your low credit score or others who changed their credit terms, then your interest rate increases significantly. This does not mean that the new charges bring to this particular credit card account: the highest rate affects the entire balance. Yes, even the items purchased with the understanding that interest rates would remain the original rate.
Your credit grantors periodically review your credit report. Nearly half of all credit card companies take advantage of you when it is perceived as a borrower in default or high risk. The small print in your account information may include the universal default penalty, which allows the credit card company to increase your interest rate if found any of these six changes to your credit report: 1. You have a late payment on any credit account. The company does not care if you've never made a late payment for them. 2. You go over your credit line available at any credit score. Even if you unknowingly, charging a small amount on the credit limit, that credit card issuers let you do, your interest rate may go up.