Only See Inside Of Me

Generally people don’t read the conditions and terms carefully specially the terms in fine print. In this fine print the terms and agreements are buried which are of importance. There is one of the important term known as UNIVERSAL DEFAULT.

The Universal Default clause states that if you default (are late paying your bills) to the credit card issuer or any other lender the interest rate on the credit card could be raised. The Banks who utilize this term check the credit reports of their cardholders periodically. If a credit score is lowered for any reason—late payments, high debts on loans, etc.—then the universal default can be activated. Yes, even if you have a perfect bill-paying record with the card issuer.

Now the question arise what to do to stop Universal Default clause from activating. The two keys are to pay your bills on time and to avoid becoming what the banks consider a credit risk.

Always make your payments on time. If possible, pay bills when you receive them instead of when they are due. Online bill paying is becoming an increasingly popular option for many consumers.

Monitor your credit on a regular basis. Check you credit reports at least once a year and checking your reports twice a year is not a bad idea. Similarly, you need to regularly check your credit score and educate yourself about the factors involved in credit scoring. Improving your credit score can help you avoid universal default and may result in significant interest savings, not only on your credit cards, but on other loans as well.

Understand your card terms. First, make sure that your current credit balance is at a low rate. If your credit score is above 700, then you should be able to qualify for a good rate (a rate below 10% is considered attractive in today’s market).

Read your mail. We’ve become so accustomed to receiving credit card offers in the mail that many times they head straight to the recycle bin without being read. Start reading mails at least give a glance so that you don’t miss out on messages sent by the credit card companies.

Hopefully card issuers will consider changing their strategy if enough dissatisfied consumers express their disgust.