IS YOUR CREDIT CARD STATEMENT CHARGED WITH FINANCIAL CHARGES

FINANCE CHARGES CREDIT CARDS

IS YOUR CREDIT CARD STATEMENT REFLECTING A FINANCIAL CHARGE ON YOUR CREDIT CARD ACCOUNT.WELL THIS SHOWS THAT YOU HAVE NOT HANDLED YOUR  CREDIT RESPONSIBLY.A FINANCIAL CHARGE IS LEVIED ON YOUR CREDIT CARD ACCOUNT WHEN:-

YOU HAVE PAID ONLY THE MINIMUM AMOUNT DUE

YOU HAVE PAID PART OF THE AMOUNT DUE

YOU HAVE NOT MADE ANY PAYMENTS AT ALL

This is one of the main reasons that many card holders turn into defaulters or their credit card account gets blocked.When you make a purchase from your credit card and use a certain percentage of your credit limit.you are given a certain number of days time to repay or clear that amount from your credit account.If you pay only minimum amount due or 50% of the total amount due then you are charged with financial interest on the remaining amount and that is carried forward to your next month statement.

If before the next month statement is generated you again make a transaction on your credit card and use your credit limit available and there is already a finance charge on your credit account ,you will charged with financial interest on the new transaction as well.This will follow on for each month till all your dues are completely cleared.In this way you end up paying more than you bargained for.

The bank/financial institution whose money you are using in the form of credit is constantly earning from you in the form of late fee charges and finance charges and leading yourself towards financial destruction.This created a very bad credit/payment history for you and this in turn adversely affects your credit score which makes it more difficult for you in getting approval for loans at best possible rates of interest.