We can hardly imagine our modern life without credit cards. We use credit cards to make purchases, rent cars, book tickets and hotel rooms, etc. We invented credit cards to make our life easier and get some benefits. But to be a success in credit cards you should know all the pitfalls of the business. Otherwise you will get into a even without noticing it. And then your credit card deal will become a heavy burden for you.



Financial experts point out that most American consumers are too careless. Many of us hardly read our credit card agreements at all. But experts say, skipping details in credit card agreements can cause you many future problems. Also, hunting for the best credit card deal, most of us pay more attention to the benefits credit cards offer than to possible losses. But often exactly these possible losses should keep you from signing for a new .

Many credit card traps are hidden in the fine print of credit card agreements. Have you ever heard about ?universal default? clause? If you haven't, you are lucky. But check your credit card application and make sure that there is no such clause in it.

Universal default clause means that in case you make a late payment to any of your lenders your creditor is to raise interest rates on your credit card. Imagine, just one late payment on your mortgage, car loan or your credit card and the interest rate on your credit card is to jump!

If you have universal default clause in your credit card agreement, your creditor is entitled to raise your interest rates up to 30 percent in case you are late with your payments. You can be sure, creditors will never miss a chance to get more money out of you! If universal default is imposed on you, you will become a cash cow for your creditors for a long time.

But how can we protect ourselves? How to avoid universal default?

First of all, read thoroughly your credit card agreement! It is better to avoid credit card deals with universal default clause at all. If there is a clause in your credit card agreement that you don't understand clearly, contact your credit card company and clear up the point. Thus, you will avoid many possible credit problems in the future.

If it you have universal default clause in your credit card agreement, you can transfer your balance onto another card that doesn't have this clause and cancel the old account. Find a proper and benefit from lower APR. But mind, cancelling one of your old credit cards can affect your credit history. Contact your creditor to make sure that you won't spoil your credit history.

And the last thing. Pay your bills on time and check your credit report regularly. If you find a mistake in your credit report, contact credit bureaus and correct the mistake. Good credit report is your ticket to your secure financial future.