Credit card companies are normally trapping their costumers and put them in debts. Avoid using credit cards and help yourself to get rid of paying your debts.

How credit card companies earn profit

Credit card companies do not like those customers who pay their debt on time because they cannot earn more profit from such costumers. Those clients who cannot pay their debt are the main source of income for such companies because they can charge extra penalties from such costumers and also charge high interest rate for such poor credit score clients.

Trick played by credit card companies

These companies are used to inform their clients that they have to pay just 4 to 5 percent of the total money and rest of the amount will be paid in installments. This seems so attractive to the clients but in fact they are charging more than you have borrowed from them by applying many hidden charges and high interest rates. For example if you are supposed to pay 5000 dollars, they will offer you to pay just 200 dollars each month but besides this they will charge high interest on your net balance. That will affect your credit score also.

Beware of credit card companies

Many credit card companies are trying to sale their credit cards by offering many gifts and low interest rate offers. Read the full story