Many of the people we talk to feel their creditors have taken advantage of them. Most of that belief is a misperception.
The vast majority of creditors follow the rules and abide by the agreements they sent you when you applied for credit.
However, people are still plenty upset with their creditors and want to know how they can get back at them for all the high interest rates and fees.
So, here's a list of ways to stick it to your creditors. Kids, don't try this at home. These tricks are for adult implementation only.
1. Pay your bills before the due date
These days credit card companies make a ton of money if you don't pay your bill on time. With late fees at or above £30 each month, it's easy to see that this is a cash cow for creditors.
Creditors love people who never send their payment in until the last minute. The later you wait to send it, the greater the chance your payment will arrive past the due date.
Stick it to your creditors. Send your payment as soon as you can. The extra 14 cents you would have earned in interest by leaving your money in the bank isn't worth the risk of a late fee.
2. Keep your balance below the limit
If you have credit card balances that are higher than your credit limit, your creditors rush to their cash registers again. Ka-ching!
While most creditors will allow you to exceed your credit limit, they will charge you an overlimit fee each month until you bring your balance back in line. Like late fees, overlimit charges can run as high as £30 or more and are simply putting money straight into your creditors' pockets.
Stick it to your creditors. Keep your balances way below your limit.
3. Pay your credit card bill in full each month
Using a credit card for regular purchases can be a great financial tool. You get to use someone else's money for free each month and receive a consolidated statement to help you keep track of all your purchases. All you have to do is pay the bill in full before the due date.
Credit cards save you from carrying a pocket full of cash and the credit card company will help you if you have a problem with a product or service you purchase with the card. You might even get rewards or perks when you use the card.
Stick it to your creditors. Avoid all the interest charges by paying your bill in full each month.
4. Check your credit report
Your creditors have got their eyes on you and they are hoping you'll keep your eyes off your credit report.
In fact, these days, a whole bunch of people have their eyes on your credit report.
Your insurance company is watching so they can determine how much they are going to charge you for insurance. Insurance companies think that if you are having credit problems, you are an insurance risk. Okay, so maybe it's just an excuse to raise your rates.
Your credit card companies also keep a close watch on your credit report. They're looking for bad marks, also.
If you run into problems with one of your creditors, don't be surprised if all your credit cards get a sudden increase in interest rates. Even if you have been paying your bills on time to your other creditors, they can all raise their rates if you pay someone else late. (Check your terms and conditions. It may be in the fine print, but it's there.)
It's not uncommon these days to see rates near or above 30 percent once your credit report starts to show late payments.
If you haven't checked your credit report lately, you don't know if it's got any incorrect information on it.
Just because you've been a model citizen when it comes to paying your bills, you don't know if somebody else's bad habits have landed on your credit report in error. Every credit report we see these days contains errors.
Stick it to your creditors. Order a copy of your credit report. It will show all the payment history about you on file with all three major credit-reporting agencies. Make sure someone else's problems don't become yours.
