Economic survival guide: Watch credit card terms

Some credit card companies are doing everything they can to make more money.

Increasing interest rates is one tactic and, if you don't know why, you might be able to blame what's called "universal default."

Credit counselor Dean Wegner said, "What this says is, 'if you're late on this card, your interest rate's going to spike.'. But, what it also says -- which a lot of peple don't know -- is 'if you're late on another card, your interest rate on this card is going to spike."

Under the clause, Wegner said your interest rate also can go up if you're late on virtually any payment.

"If you're late on your automobile, mortgage, second mortgage, home equity or student loads, your interest rate's going to spike."

The good news, Wegner said, is that only about 60 percent of credit agreements have a universal default cause.

Check with your credit card company to see if it has one, he advises.

"What you want to ask is, 'is there any language that says, for any reason, can you raise my rate based on my dealings with other consumer finance affairs?'"

If the answer is yes, Wegner said, "you don't want to keep that credit card in your pocket to use day-to-day. You want to get rid of that."

Closing the account completely will hurt your credit score, he said.

"The best thing that you can do is to do a balance transfer to another credit card that doesn't have it."

Available credit limits can be cut and other fees imposed under the universal default clause, Wegner said, so be sure to always read the fine print when applying for a credit card.