Very few people read the fine print on their credit card agreements. It’s complicated and hard to understand. Basically, if they can make the minimum payment, they are content. But what’s in that fine print can mean thousands of dollars depending on the balance you carry.

The fine print you never read probably contains a clause that allows the company to change your APR (annual percentage rate) at any time, with only 15 days notice to the customer. They can do this for any reason they deem reasonable. Often the contract states that your rate will increase to a higher default rate if you are late with payments.

Another clause that is gaining popularity with banks is the “universal default”. This allows the bank to raise your interest rate if you are late on payments to other creditors, or if the bank feels you are carrying too much debt. It is very easy for credit card companies to track your spending and debt as well as your credit score.

Remember, read the fine print. Know the terms of your credit card contract before you accept it. Once the bank has raised your interest rate to a punitive level, it will be too late.