Originally published March 23 2005
Consumers must watch their credit cards' interest rates, as late payments can raise even fixed rates
by Mike Adams, the Health Ranger, NaturalNews Editor
According to Lee Harrison, the founder and president of Lee Harrison Credit Restoration, credit card companies can and do raise rates with little or no warning. A late payment on one credit card can cause other credit card companies to raise even so-called fixed rates. As well, late payments on a mortgage can cause credit card companies to increase their rate without warning.
Lee Harrison Credit Restoration shares the facts behind credit card interest rates, including little-known practices of credit card companies concerning the rest of an individual's monthly bills and how they can adversely affect a credit report.
March 16, 2005 -- Lee Harrison Credit Restoration, recently named the top business and website in the credit report repair industry by Alexander Haig's World Business Review, has shared some of the little-known facts behind credit card interest rates with the public.
According to Lee Harrison, Founder and President of Lee Harrison Credit Restoration, there is no such thing as "fixed rates" when it comes to credit cards.
"Basically, credit card companies can write their own rules," said Harrison.
"Credit card issuers can change their interest rates---even fixed rates---at any point, as long as they send cardholders advance written notice.
According to Consumer Action's 2004 survey of credit card issuers, 31 percent of issuers will levy a penalty rate after one late payment, while more than 35 percent said that two late payments in a period of six months will trigger a penalty rate.
The average penalty rate for late payments: 22.9 percent.
"But paying your credit card bill on time still isn't enough," said Harrison.
"Nearly half of all credit card issuers have a universal default policy, and they don't all disclose this in the fine print.
To see more information about the Fair Credit Reporting Act and consumer rights, visit www.LHCreditRepair.com.
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