Credit Card Surprises - Part One -

Let’s face facts; Credit Card Companies have to make money too. We know this and it would be foolish to dispute it.

But what about the companies that make their profit by hiding or disguising the real costs in using their cards? That’s not fair. Listed below are several ways you could currently be paying more – unknowingly – for your credit cards than need be:

1. Introductory interest rates. Also called ‘retro rates’ and ‘teaser rates’, good name right? An introductory rate is low in the beginning but increases after six months or so. These are a popular way for the card issuer to attract new members.

What they typically don’t tell you, or reserve for the fine print, is when the low introductory rate expires, any balance you have on their card jumps to the new rate, not just recent purchases.

2. Expensive cash withdrawals/advances. Many times there is both an interest charge and a separate fee for cash advances. You will be paying interest from the day you receive the advance, no grace period, and the transaction fee may be as high as 5%.

Even in those situations where the ad says “no finance charges,” there is most likely a transaction fee involved somewhere. Don’t forget to read the fine print.

3. Invisible fringes. Card issuers offering benefits including percentage discounts, purchase protection or rebates have been cutting back.

4. Most grace periods are gone. Cards that offer multi-features and high-limits might sound great to begin with but may not have a grace period.

If the company charges interest from the date you make a purchase, these types of accounts are expensive even if you pay in full each and every month so be cautious.

Click Here To Read Credit Card Surprises Part Two