The Government Accountability Office (GAO) recently released the results of a study on credit card fees and other practices and how cardholders have been affected.

The GAO report noted that: “Originally having fixed interest rates around 20 percent and few fees, popular credit cards now feature a variety of interest rates and other fees, including penalties for making late payments that have increased to as high as $39 per occurrence and interest rates of over 30 percent for cardholders who pay late or exceed a credit limit.”

The report also said that required disclosures of rates and terms were difficult for consumers to understand.

For most real estate investors, credit cards play an important role in your business strategy for a variety of reasons, including contributing to your credit rating, convenience, record-keeping, and even providing short-term cash for investments. That’s why it’s important that you fully understand the terms of each of your credit cards.

To read the GAO’s report, go to: http://www.gao.gov/new.items/d06929.pdf

Jackie
Chief Blogger
Wealth Intelligence Academy