Arbitration Clause/Agreement

• Some credit cards have a mandatory arbitration clause. This clause states that if you have a dispute with the credit card company you waive your right to have your case heard in a court of law. Instead your case will be heard by a mediator. The majority of mediation cases are decided in favor of the credit card company.
  
  

Default Rate

• A credit card usually has a default rate. If you are late with your payment your interest rate could increase to 29.99 percent, depending on the credit card. Even if you have a zero percent promotional rate for balance transfers, a late payment will cause it to increase.
  
  

Universal Default

• When you are late with a credit card payment it could affect your other credit card accounts with other companies. They could lower your credit limit, increase your rate, or close your account. It all depends on that credit card company. This is known as the universal default clause.
  
  

Payment Allocation

• When you make a purchase or a balance transfer they are usually subject to different interest rates. When you make your monthly payments the balance with the lowest interest rate gets paid first.
  
  

Rate Change

• A credit card company can change your interest rate any time even if the rate is fixed. They have to give you written notification, which is usually 15 days prior to the change in rate.