The Right Way to Avoid Credit Card Penalties

Posted by Obapo Gana

September 28, 2009

by Obapo Gana

Almost every person who takes up a credit card does so knowing that they will have to make payments on the credit card balances on a regular basis. Furthermore, the person taking up a credit card does so knowing that late repayment of the credit card balances is bound to attract some penalties. In spite of being made clear about these things right from the time people are taking up credit cards though, many still find themselves defaulting or falling very late on their credit card balance repayment, leading to a situation where they have to suffer the penalties. Indeed, the number of people who find themselves suffering late credit card balance repayment penalties is so great that most credit card companies look upon the late credit card balance repayment penalties as one of their leading sources of revenue!

But while the credit card companies have become accustomed to late payment of the money they effectively lend to people through the credit cards (and perhaps actually come to like it because of the penalties they charge on such people who fall late on their repayment of credit card debt repayment), it is noteworthy that the money so paid as late credit card balance repayment penalty is money that is utterly lost from the credit-card holders’ perspective, as they get absolutely no value from it.

But while fair credit card penalties are understandable (as a way of keeping people conscious to the need to service their credit card balances on time), few things can be as exasperating as those unfair credit card penalties, where you just wake up one day, check your mail - only to find that you have been penalized for late payment of credit card balances, in spite of your having paid your last balance in what you thought was a very reasonably good time.

One good way, then, to avoid such unfair credit card penalties is by automating your payments. This is where you get into an arrangement with your bank for instance (especially if you run an online bank account), to be automatically crediting your credit card company’s account on the balance due date with the minimum credit card payment required to avoid a penalty - as a standing order, that is, even without your direct instruction. You can later, of course, make any additional credit card payments above the minimum, but after having avoided the misunderstandings that can cause an unfair credit card penalty first.

Making an effort to really understand your credit card company balance repayment guidelines (and following them to the letter) is another thing you can do to protect yourself from falling victim to unfair credit card balance repayment penalties. At the very least, ensure that you get the address to which you should send your credit card balance repayment check to clearly, and that you write the check legibly, to avoid a situation where the people employed to process the payment have difficulties doing so, leading to a situation where the penalty threshold date arrives while they are still struggling to process the payment.

If the possibility of making your credit card balance by phone is available to you, it is yet something else you might consider in avoiding late credit balance repayment penalties, because unlike the case of ‘a check in the mail’ there is very little opportunity for misunderstanding through this mode of credit card balance repayment, as the transaction is made and completed in real time.

About the Author:

You can learn how to get the best credit card. Also if you want for people credit cards with bad credit at the site.

Credit Card

Tags:Credit Card
Technorati Tags:Credit Card

If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.

Comments

No comments yet.

Ebay Deals on Credit Card

[CaRP] Can't open cache file.

Credit Card

Vintage Silk Scarf, (260A)
4 Aug 2010 at 9:14am
US $7.97 (1 Bid)
End Date: Monday Aug-09-2010 7:14:46 PDT
Bid now | Add to watch list

200 Chrome Tire Valve Caps
11 Apr 2010 at 9:09am
US $29.95
End Date: Monday Aug-09-2010 7:14:46 PDT
Buy It Now for only: US $29.95
Buy it now | Add to watch list

GOLD PLATED Bridal Kundan Necklace set with Earring
2 Aug 2010 at 9:14am
US $12.98 (0 Bid)
End Date: Monday Aug-09-2010 7:14:46 PDT
Bid now | Add to watch list

01 02 FORD EXPLORER ANTI-LOCK BRAKE PART
11 May 2010 at 9:09am
US $85.00
End Date: Monday Aug-09-2010 7:14:46 PDT
Buy It Now for only: US $85.00
Buy it now | Add to watch list

99 00 01 02 SILVERADO 1500 WINDSHIELD WIPER MTR
10 Jun 2010 at 9:09am
US $35.00
End Date: Monday Aug-09-2010 7:14:46 PDT
Buy It Now for only: US $35.00
Buy it now | Add to watch list