Somewhere, hidden in the small print of the credit card disclosure agreement, may be the words “universal default”. These are words you want to avoid in any credit card you apply for. Universal Default is the phrase used to describe the practice of raising all interest rates on all of your accounts if you happen to make one of your card payments late.
You might be late with your MasterCard, and discover that the interest rate on all of your other credit cards (and sometimes even your loans) have increased. On top of the $29-$39 late fee you’ve paid, now your balances will all receive higher interest rates for the life of the balance!
The perfect solution is to always pay all of your bills on time. Sometimes this isn’t possible, though. If you find you are going to be short, sometimes you can avoid late fees and interest rate hikes by contacting the credit card company before the payment is due to explain your situation.
You might be late with your MasterCard, and discover that the interest rate on all of your other credit cards (and sometimes even your loans) have increased. On top of the $29-$39 late fee you’ve paid, now your balances will all receive higher interest rates for the life of the balance!
The perfect solution is to always pay all of your bills on time. Sometimes this isn’t possible, though. If you find you are going to be short, sometimes you can avoid late fees and interest rate hikes by contacting the credit card company before the payment is due to explain your situation.
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