These days, credit cards are so helpful, and almost everyone knows it. This means that people want them, and they usually want them quickly. Even credit card companies know this, which is why they often offer "deals" that aren't really deals at all. You've probably gotten credit card applications in the mail and seen credit card offers on the Internet. Here are a few things to watch out for in some of these deals.
How long the introductory offer lasts
Take some time to think about it, since many people get a credit card based on how good the introductory offer sounds. Figure out what it says and what it doesn't say. For example, pay attention to how long the first offer is good for. In some cases, this offer is only good for three or six months, which isn't nearly long enough to break in a new card. In other words, you want the 0% APR interest, but they are only giving you a carrot to make you want it more. They give it to you, but it's not something you can really use. Some credit card companies, on the other hand, will let you enjoy it for up to 12 to 15 months.
There may be fees.
Credit cards do have fees, but some cards have more fees than others. After the introductory offer is over, all credit cards charge interest, and all charge late fees. As far as fees go, that's about all there is to compare. Some cards have yearly fees, activation fees, minimum balance fees, and other fees. You can be pretty sure that if there are a lot of fees, you won't get much real use out of that credit card. They want their money back, so they'll do anything to get it.
Transfers of Money
Balance transfers are a good idea, especially if you have balances on other credit cards with higher interest rates. Choosing to transfer your balance can be a great way to save money on interest. The problem is that some credit cards will charge you up to 4 percent for any transfers you make. Even though it's less than the interest you were paying before, many cards won't charge you anything for it, and some won't charge you any interest until your entire balance transfer is paid off. Also, the amount of time you may be able to enjoy the 0% APR on balance transfers may be much shorter than on purchases.
Transferring your balance is a great way to save money. You can combine some or all of your debts into one payment, and you can pay down the principal instead of just paying interest on interest. If you don't buy anything else with the card, it can help you get out of debt if you have the right one.
Look out for payments that are late.
It seems like some credit card companies are out to get you. If you make even one late payment, you might lose your introductory interest rates and go straight to the regular interest rates. Get another credit card if you find yourself in that situation.
