5 Credit Cards and Free Goodies

By Remar Sutton - Attitude Advisor

(Page 3 of 3)

The disappearing grace period. The big print may say that the card offers a 25-day grace period on new purchases before interest starts to accrue. The small print says that if the card carries a balance (if you don't pay it totally off every time), then interest on any new purchases or balance transfers, etc. starts accruing from the date of the purchase or transaction.

Receiving a different card than the one applied for. The promo may offer a gold or platinum card with no annual fee, 2.9% intro interest rate and 10.9% fixed APR thereafter. But when your card arrives, it is just a "basic card" with a credit limit of $1500, an annual fee of $35 and an APR of 22.9%. Congratulations, you have been a victim of the asterisk * (* "with approved credit"). If you don't meet the card issuer's criteria (and only they get to judge what those criteria are), then you may receive a very expensive card. Decline the offer or cancel the account—immediately.

Fees, fees, fees. Fees are the money-makers for the card issuers. These include monthly finance fees (interest), annual fees, balance transfer fees, cash advance fees, late payment fees, over-the-credit-limit fees, convenience check fees, and on and on. Study the fine print carefully for fees and terms related to those fees.

Too many credit cards will ruin your credit before you really have credit! Don’t be the sucker many financial institutions think you are…slow down, stick with one credit card, and listen to your good sense, not the hype.

Don’t have a credit card yet? Talk to the staff at the credit union office and apply for one that fits your needs. Do it this way and don't end up in debtors prison!

Make sense? Read more about issues like this in our other articles and be sure to give us your feedback.

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