Don’t settle for punitive terms from your credit card issuer, says Kerry Smith. If you are being hit with hidden charges on your credit card, find another issuer.

• Interest backdating. Interest on a purchase usually be-gins accruing the day the purchase amount is posted to your account. Some companies, however, charge interest beginning on the date of purchase—before they’ve even paid the store.
• Two-cycle billing. If you have recently switched from paying your bill in full each month to carrying a balance, check to see how much interest you’ve been charged. Some issuers charge two months of interest the first month you carry over a balance.
• Teaser rates. If you sign up for a card with a low introductory rate, when the rate expires your existing balance will usually be subject to the higher interest rate.
• Grace periods. Many issuers are eliminating grace periods altogether, which means you are charged interest on everything you buy from the day you buy it, even if you pay off your balance monthly.

Cash advances. Beware of hefty transaction fees, high interest rates, and stiff finance charges on cash advances from your card. Use only in an emergency.

Finance

Tags: trade, trade secrets, trade tips