You’re at a certain disadvantage when making a credit card application - because providers keep crucial information to themselves until the very last stage of the process.
My bank tried to hit me with this sneaky rip-off last year. I’d had a £1700 overdraft limit for the last year. Then one day, I got a letter from my bank, saying it was delighted to be able to arrange a £1700 overdraft limit for the next 12 months (in other words, not ‘arranging’ anything new at all!). Further on - right at the end of the fourth page to be precise - I found a single sentence saying they’d be charging me a £25 fee for this ‘privilege’.
If you buy home insurance from your bank, you’ll probably be asked whether you’d like to pay all at once, or in monthly instalments. Monthly payments sounds great in theory, because it means you don’t have to find a large chunk of cash all at once. However, steer clear if at all possible: Pay like this and you’ll usually be charged a hefty rate of interest for the privilege.
Everyone makes mistakes and a financial mistake can be disastrous because banks don’t tell you that you’re sinking further into financial chaos. If you exceed your overdraft limit for example, you could face a hefty fine and an extortionate rate of interest. And of course, it is not in the interest of the bank to tell you, because every day that passes by, they’re benefiting from your error. This is one good reason why you should always check your balance and transactions on a regular basis.