Credit Card Facts
If you are low on balance (debt), you enjoy the convenience of a credit card. Again you are calm knowing that both your money and budget are on track. Undoubtedly, you will have an inner sense of freedom.
In the other hand, the higher your balance, the weaker your credit score. You do not need to carry a balance in your account, rather struggle to build your credit score.
Everyone has a different perception of credit and credit card. However, in this article, we are going to discuss some credit card facts that might perhaps change your few.
Your credit card number is not random:
Every qualified credit card has a number that meets the criteria of the Luhn Algorithm. Starting from the right, double the second digits then sum them together. The result should be a whole number that is evenly divisible by ten. For example, 2222 will become 4242. That is why it is also known as “the Mod 10 algorithm”.
You are covered by the CARD Act
Credit Card Accountability, Responsibility, and Disclosure Act of 2009 offers consumer protection. Some of the regulations given to credit card issuers are – keeping consumers informed of any payment consequences, consumers have at least 21 days to make payment, removal of over-limit fees and many more.
Credit at the pump can endanger your card
Credit or debit card at the pump is usually authorized for the purchase of $50 gas even if you pump less than the amount. Assuming your limit is below $50 at the moment, your purchase will be rejected. Again, if you try making the purchase elsewhere, your account will show as an empty account. You will get rejected a second time.
Credit card ID.
Below is some credit card industry identifier.
-1 and 2 are for airlines
-3 is for travel/ entertainment
-4 and 5 are for banking/ financial
-6 is for merchandising/financial
-7 is for petroleum
-8 is for telecommunications.
The first six digits on a credit card signify the credit card issuers . Example, 51-55XXXX – MasterCard, 6011XX – Discover, .while the rest of the digits are your account number except the last number.
Can a high-interest rate be reduced?
If you consider your interest rate to be too high, you can always request for a reduction from your lender. No lender wants to lose a customer so you stand the chances of getting considered. Again, you have the power to move your balance to a new lender. It never hurts to ask, as the old saying goes. Ask your lender because he would like to make money from you.
A prolonged payment
The longer you lengthen the payment on your credit card, the more interest it yields for you. Let’s assume you have a debt of $ 2,000, 18% annual rate, and 2% balance.You will have over 30 years to clear this debt. This time, you are paying $4,931 as interest rate and 147% as balance.
Who approved it?
If you are charged outside the $50 max limit you have, you can immediately report to your credit card company and declare your account missing. If an authorized charge appears on your credit card history, you are free of debt and won’t pay a dime.
1 trillion dollar debt
According to a new Wallethub.com, Americans added $33 billion in credit debt as at 2017 second quarter. The study revealed that Americans will add an additional $60 billion to their debt completing it a total $1 trillion debt.