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Punished for good financial behaviour?

You may be making payments on time and never rolling over credit, but the card issuer can raise interest rates and fee as it is not earning anything from you

Credit Card

Arnav Pandya 

You think it always pays to maintain discipline in your financial transactions. You always repay bills on time and avoid rolling over the outstanding amount for the cost of negligence would mean paying exorbitant interest rates in case, of the entire amount is not paid by the due date. Many card holders even believe that maintaining good behaviour may enable them to reduce the interest cost. But they could be surprised to find that good behaviour doesn't always earn them a reward. In fact, if you are a disciplined customer, card issuers can raise interest rates as they are not earning money from you.



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First Published: Sat, June 18 2016. 22:38 IST