Don’t Fall for these Credit Card Tricks!
The people who advertise credit cards are smart people – and by that, I mean they are very good at using flowery language to disguise some of the hidden fees and penalties that can arise from using their cards. As a responsible credit card user, you have to be able to decode that language so you don’t end up paying excess fees. Here is a look at some of the more common tricks.
You may exceed your card limit - Your credit card will have a limit, but it’s not exactly written in stone. This can be beneficial in an emergency, but many companies want you to go over your limit regardless. The reason? The more you spend on the card,the more you owe, and if you go over your limit, you can now be charged fees and face interest rate hikes. Fun!
Transfer a balance- Not only will you pay a much higher interest rate on balance transfers after the promotional period ends, you will likely be hit with an extra 3% fee for each balance you switch over. Here are some more things to look out for when transferring a balance.
Low minimum payments- Most credit card companies offer low minimum monthly payments (typically around 2%-4% of the balance). The problem with this is it stunts your ability to pay off the full debt and will ultimately cost you more in interest. Here are some more benefits to paying more than the minimum.
0% APR on purchases for six months: This is a clever way to make you used to using your card for everyday purchases so that once the promo period is up, you start paying a much higher interest rate.
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I say just pay off your credit card every time you make a purchase with it. Don't even mess around with the minimum payments–they'll only make you pay more interest, and hence more money, in the end.
Yes! I agree. If you have to have a credit card then pay it off at the end of every month. If you do not pay it off the your payment will get out of control and you will find your self in deep debt a few months later.
Interesting, I just got a credit card offer today…
I myself think credit cards should only be used by the people who hold enough will power. To not use the card in excess to cause one to go in debt. Never exceed the limit they give you on your card you will regret you did.
** Yes, don't get hooked into thinking the credit card companies are being – oh so very nice – just as any other company – they want your money!!
** So make certain you pay off your credit cards Monthly. If not, you will owe what you charged + interest – then if you don't pay balance the next month, you have to pay what you charged + last months interest + new interest on the balance & last months interest AND it can go on & on & on & on…. And before you know, you are wwwaaaayyyyy in debt!
** Get the idea!!
Yeah, credits are tricky. Wouldn't even try to get one.
to me when it comes to credit cards the best thing is to not use it as a way to get out of things because it will come back to haunt you
This would have been helpful to know in high school. Too late for me
I only have one student credit card, and i think that it is enough.
Yes, I agree with this subject because some of my friends have a hard time paying for higher interest rate of credit cards.
This article is so relevant right now…many people have credit card debts that are outmatched only by the amount they owe on their mortgages!
Tricky stuff.
yes it is!
I remember in middle school when some guest speakers came and told us about using credit cards. One of the things they told us was to just not use them at all because of the trouble they could potentially cause. Sure, you don't have to actually pay for that certain item at that point in time, but you will have to pay for it eventually.
great information!!! really enjoyed this article!!!
very good article
its a great articled since im a college student who has been offered credit card on montly basis thanx for the post
death to credit card companies!!!
I think if you have used your credit card I would suggest you pay it off right away or pay more than the minimum that they say you need to pay because if you just pay the minimum then they would just keep tacking on interest on top interest each time having you pay more than what you really owed.
Don't charge unless you can pay for it. Always keep that in mind.
interesting
Credit card companies really do try to make you bank rupt. . . But a big problem is that in order to get credit for getting lones, we have to get a credit card- which in turn screws everyone over because they dont know how to control and manage it.
Tricks, indeed! I have always hesitated getting credit card because of these reasons. But I don't really have a choice. I need more credit! @ Belle that's a good idea. I think that's what I'll keep in mind every time I purchase with a card…when I get one.
we always pay off our credit cards right away. good credit = happy family