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~Universal Default Clause~


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Here's what I read in "The ABC's of Getting Out of Debt." By Garret Sutton, Esq.

"Universal Default Clause, one of the most odious of all credit traps. By being ONE day late on any payment to any creditor, the credit card company can charge a default rate on any existing balance up to 29.99 %..."

Does anyone know if their cards carry this clause? If so, how? Is it in the pamphlet you get w/ your cc?

So, if you're late with your Sears card payment--than your Target card could boost your interest rates? Sheesh.

Elyse

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Orchard pulled this on me stating that it was because of my CR. Yet strangely this was before I had gotten my first deletions, so my CR still looked exactly like it did when they issued me the card.

i would be fighting them on that. If they pulled ur credit to give you the cards, and whatever rate you had, then they were already aware of any defaults and can't use that to jack it up later just because they feel like it.

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i would be fighting them on that. If they pulled ur credit to give you the cards, and whatever rate you had, then they were already aware of any defaults and can't use that to jack it up later just because they feel like it.

I completely agree. I just hated learning about this topic because it seems like at every turn in this "credit realm" there is yet ANOTHER pitfall to watch out for. Dam*ed elephant farts...anything to punish...and so little to reward. Well, I take it back...I'm sure there are PLENTY of rewards for maintaining good credit and what not...I just have yet to experience it, but I'm sure it's there.

Elyse

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