If you’re trying to figure out your path through the credit card jungle, universal default is one of the biggest concepts that you need to learn. You see, it’s a practice that is industry wide that could absolutely derail your credit repair plan before you know it.

Simply put, universal default means that the terms of a loan can be changed when that lender is informed that you’ve defaulted with another lender. The way they figure it — if you’re going to default on one, chances are very good that you’re going to default on the others. So the credit card companies have realized that they might as well raise your interest rates just in case. They are looking at make as much money from you as possible. You will just need to make sure that you’re focusing on getting your finances back on track rather than worrying too much about universal default.

However, it is something that’s definitely alive and well in the industry, and it looks like it’s definitely going to be here to stay. Credit card companies are always worried that they are going to not only lose out on money, but also find that they really can’t charge you as much as they wanted to charge you in the beginning. Therefore, if you are going to default on anything, you will end up paying a lot more in the long run than you expected.

Instead of worrying, it’s important to plan your credit products wisely. This is why limiting the amount of credit cards that you get is very important. You don’t want to find yourself getting too many cards that you later can’t repay. This will only raise your interest rate across the board.

If you look at the fine print on your credit cards, you’ll often find that they include a separate interest rate that kicks in when you default on your card. Under universal default, you’ll now have to worry about other cards that could affect your credit performance. The more interest you are charged, the harder these credit cards are to repay in the long run.

Some argue that the credit card companies are just trying to protect themselves, and there are some valid points in this direction. However, you’re going to have to make sure that you focus on your own financial interests and not the credit card companies. They’re going to make money whether or not you’re on board with it — you just need to think about how their policies are going to affect you in the future.

Getting your payments done online in an early fashion is one of the best ways to make sure that you don’t default ever. They can’t ding you for an early payment, and you will save on interest based on the way it’s calculated.

Check it out today — it could really be the best decision you make!