You may think that you know your credit card inside out, but there are some surprises still. Here are some lesser known facts about credit cards.
No Cap on Interest Rate
You may have signed up for a credit card that has a low interest rate, but credit card issuers are able to increase the interest rates as high as they like. The interest rate is only protected for the cards first year or the first six months. This protection is also dissolved if you go 60 days on a late payment.
Credit Card Protection`
When you buy something online and it never arrives, or it’s the wrong thing or if you get a bill that is not yours then your credit card is able to protect you. With a credit card you are given certain consumer rights. You should then know how your credit card is able to protect with purchases and how to dispute any problems.
Card Could Be Denied Overseas
There are some credit card terminals overseas that only accept EMV credit cards, which are Europay MasterCard and Visa. This type of card has a microchip and not a magnetic strip. This means that your credit card might not be accepted overseas.
The biggest frustration for this is at automated kiosks for tickets and transportation. If there is a ticket booth that is operated by a man then you might be able to use your credit card.
There are credit card issuers that offer chip cards. These are issued to customers that travel internationally.
If credit cards with chips in are the norm for the country that you are visiting, then you should request an EMV card from your issuer before you leave. Also have a look at pre-paid chips cards at your destination.