financial independence

Heres the small print from your credit card contract made BIG.

Heres how your banks making money out of you and how you can turn it to your advantage maybe even make some money out of them.

Crafty Credit card trick 1. Interest Backdating

Most credit card issuers charge interest starting from the day a purchase is made on your credit card account if (like most people) you don't pay in full every month. Did you know however you're being charged interest before they've even paid the shop!

Thats right they're charging you for the money from day One but it usually takes 3-5 Days for the transaction to go through, in a way I suppose this is reasonably because they have an arrangement you wouldn't get anyway. But if your a regular credit card user it could work out as a lot of money for them!

What can you do? Look for another card issuer One that has a 0% on purchases and balance transfers for a fixed period.

Crafty Credit card trick 2. They take your savings

You have money in a current or savings account at a bank. Plus your credit card or loan is issued by them. You signed an agreement when you opened the account and it permits the bank to take those funds if you fall behind on your credit card or loan payments. They don't care if you don't enough left over to pay your mortgage, rent or feed your kids.

What can you do? You can either bank somewhere else or don't bite of more than you can chew. If you start to feel things getting tricky switch accounts quick.

Crafty Credit card trick 3. Annual Fees

Not really common with highstreet lenders but subprime lenders probably still employ this little earner. Paying up to £50 a year as an annual fee on your credit card. 

What can you do? Negotiate if you're a customer who normally pays on time, most banks are willing to reduce or drop the annual fee. Or you can switch to a better card.

Crafty Credit card trick 4. Interest Rate Hikes

You signed up for a credit card with a low introductory rate, such as 0% APR for six months to a year. After your time is finished, your existing balance is subject to the regular or sometimes even higher interest rate like 30%.

What can you do? You can either pay your balance in full before the rate increase or look for another 0% APR Deal and close the account.

Crafty Credit card trick 5. Shortened Due Dates

Your initial offer included a 25 to 50 day interest free period in which to pay for new purchases without incurring interest charges. However the banks have been known too, can and will shorten the interest free period with little notice. You then don't pay by the due date and they can slap unfair charges of about £30 on.

What can you do? Write to them and negotiate. If they refuse, transfer the balance to a new credit card issuer.

Crafty Credit card trick 6. Balance Transfers

Many card companies offer 0% on Balance transfers, if you also make purchases with that card your monthly payments will be used solely to clear the 0% first so they can keep charging you interest on the purchases.

Theres lots more ways finance companies make money from you always look and research loan and credit card deals, always read the small print and never borrow more than you can afford.