The way you look at your credit card probably says a great deal about how much credit balance you carry. If you are one of the lucky few who have remained debt free even in this stifling credit atmosphere, then you are probably someone who spends time to look into your bill and decipher what all the fine print means. If, however, you are one of the many American consumers who are carrying large debts on their credit cards, then there is a large possibility that you are among the American consumers who consider their credit card bills as too arcane to even read.

One of the measures that the credit card bill will enforce when it becomes active is to force credit card companies to make their bills more easier to understand to the common credit cardholder. The problem is that, currently, credit card companies distribute bills which require some expert deciphering before the credit cardholder can really grasp what is going on with their bills. Here are a few details in the fine print of your bills which you should be aware of.

Available Credit

The problem with available credit is that, most credit card companies consider it more of a suggestion than an actual number which they enforce. Your available credit is something which you should always be aware of. Credit card companies, although they will inform you of your available credit, will happily let you charge over your limit. That way, they can earn form you by charging an over-limit penalty fee.

Another problem is that, credit card companies may suddenly decide to lower your limits without duly informing you. This can happen if they think that you have become a risky borrower.

Double Billing

Double billing was one of the biggest issues when the credit card bill was still up for debate. Double billing is when the credit card company charges you interest rate based on a previous balance. For instance, if you charged $300 and then paid only $200 before the bill became overdue, the company would charge you interest based on the original $300 that you owed.

Residual Interest

If you have an overdue balance and you pay it in full, you would think that you are now at zero balance. However, you would then find out that, when the next bill comes, you have some residual interest to pay for. This happens because your balance will still earn interest in between the time when the bill statement was issued and the time that you actually pay off your balance.

When the credit card bill becomes active, these deceptive practices will finally come to an end. However, that is still a few months off and credit card companies are likely to continue these practices as the months continue. The best way for you to avoid these deceptive practices is to be balance free every month and to keep a keen eye on your bill’s fine print.