You pay your credit card off every month, but happened to miss an auto loan or an electric bill payment.  A single late payment on your credit report can trigger a rate increase.  It is called Universal Default.

0% APR is great, but if you miss a payment, it can revert to a default APR of up to 35%.  There is no going back to 0% after that.

Even when you think you made a payment on your due date, the deadline might be in the morning or afternoon, payments made by 2pm on the due date may still be considered late.

The highest fixed late fee charge is currently $39 but percentage based late fees can cost hundreds of dollars per charge depending on the balance.

Variable rates can change without notice, and even fixed rates can change with 15 days notice.  Your rates and fees can be changed for any reason at any time.

Two cycle billing will ensure your finance charges are much higher if you don’t pay your bill in full every month.

Out of the country?  Be prepared to add a 1%-3% fee to all purchases in addition to a 1% exchange rate fee.

Taking our a cash advance?  Be prepared for a high APR as well as a percentage fee.  Payments made will apply to the lowest APR first.  You will have to pay off the entire balance before paying off the high APR cash advance.

Low minimum payments may sound like a convenience, but the lower the payment, the longer you will have to pay, finance charges piling up every month.

If you transfer a balance to a new card, the limit on the new card may be changed so it’s actually lower than the balance transfer.  This results in a new card that is already maxed out.  The first time you use it, you go over your limit and fees are charged.

Once your credit starts turning south, you will get offers for cards with starting fees.  A card with a $300 limit may come loaded with a Program Fee of $96, an Annual Fee of $48, an account Set-up fee of $56, and a monthly Participation Fee of $8, but charged annualized at $96.  All of a sudden your $300 card has $296 already charged on it.  If you make a purchase over $4 you will be hit with a late fee and possible rate change.

So you have cut up your cards, great, but be prepared to be hit with an inactivity fee.

Now you are up to your eyeballs in debt.  Your cards are maxed out, the APRs are high, and the only new credit you can get is tiny and expensive!