Take a Close Look at Your Credit Cards Interest Rate

You want to get a credit card and it is your first, so what all do you need to know about credit cards. First you must be approved for a credit card, this can be challenging in and off itself. But if you are approved the one feature you should be most concerned about is your interest rate on your credit card.

An interest rate can be fixed or variable, and the term fixed is a bit misleading. A fixed credit card interest rate can change, but they have to notify you in advanced about the change. Thus if you wish not to deal with the change you may pay off your balance and close the card. A variable interest rate is one that can change without the company notifying you in advanced.

There are other interest rates that can apply, not just the standard purchase or balance interest rate. One would be a balance transfer interest rate, this is a rate that is applied to any balance transferred from another credit card and is typically low. The balance transfer interest rate can change after six month, this is known as the introductory rate. But by law the introductory rate has to be applicable for at least six months.

Another interest rate that you may run into is the cash advanced interest rate. The interest rate on cash advances is typically the highest interest rate that will apply to any of your credit card features. This is when you go to an ATM and use your credit card to withdrawal cash. There is usually no grace period for a cash advanced, thus the interest starts to build on the withdrawal immediately.

Your interest rate does not have to be the same as another person who receives a credit card of the same type at the same time as you. Your interest rate is dependent on your credit history, thus depending on how good or bad your credit history is will determine your interest rate. Typically the better you credit history the lower your interest rate, and the opposite is true of a bad credit history.

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Debt Collector Scam Reaches New Low: The Unicredit Bogus Courtroom Scam

With the number of Identity Thefts on the rise, and the uncertainty of the financial market, people are more wary than ever. This has lead to scammers developing more ingenious ways to scare people out of their money. But it seems like scammers will have to look long and hard before coming up with a scheme that is more outlandish than the practices of Unicredit.

Setting Up Court

Unicredit is a collection company based in Erie, Pennsylvania. The company went to the trouble of setting up an office to resemble a courtroom. Furniture, furnishings, spectators and even a person clad all in black were all provided to the room. Some employees would impersonate police officers and deliver subpoenas to debtors. The debtors would then arrive at the court for the fake hearing.

Often times people were convinced to pay on the spot or surrender assets in order to avoid what they thought would be jail time. Of course, the collection agency did not have authority to arrest anyone or send someone to jail, but the ruse worked on a number of individuals.

Violation of Multiple Laws

Obviously this tactic was designed to prey on people’s fears and worries about their present situation in an effort to recover an actual debt that was owed. But the Attorney General for the state of Pennsylvania is not falling for the bluff. These types of tactics are unlawful and can carry serious punishment for all of the people involved in the scheme.

How to Avoid Playing the Fool

So this leads to the question, “Whom can we trust?” The answer is actually quite simple. If you owe money and are in collections you should talk to a Chicago bankruptcy lawyer. Explain your situation to the attorney and then let them provide you with sound, legal advice. From that point forward consult with your attorney about all of your correspondence with the collection agents. Phone calls, emails, and direct mail should be reported immediately to your Chicago bankruptcy attorney. The lawyer can review the information and inform you of which documents are legal and needing your attention as well as which items are just a scam trying to scare you out of your money.

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