The Credit Card Surprise That You Need to Look Out For
Companies that issue credit cards want to make a profit. No one disagrees with that. The problem is that, we as consumers have, is when they have hide or disguise what it really cost for you to use a card.
Here are some ways that you could be paying more, not even knowing it for your credit cards.
Those Teaser Rates
As these rates are low at the beginning but rise after six months or a year. This is a popular way for credit card issuers to attract new cardholders. I don't know if you're aware of this but when the low rate expires, any balance that you may have left on the card automatically jumps to the new rate and just not on new purchases. This is something you should discuss or read before you even get a new credit card with low teaser rates
Those Costly Cash Advances
There is usually both a finance charge or interest and a transaction fee for cash advance cash even though the as may say "no finance charges". There is no grace period for that cash advance. You will pay all the interest from the day you take that advance. The transaction fee may be as high as 2-5%.
Extra Fringe Benefits
Cards that were offering benefits like percentage discounts, rebates, purchase protection, etc., may have been cutting back on those benefits and without any notice. Watch your mail when you get those updated versions for your credit card. If you don't read it, then you didn't know it changed and unfortunately it's your fault.
The Grace Period.
These high limit cards may sound great but may not have a grace period. If you ever noticed on your credit card bill, you may receive the bill five days before the due date. How are you supposed to then pay your bill on time?
If you don't want to take any chances in having to pay a finance charge, then pay your bill in full each month. If you receive your bill late, call the credit card company and tell them that.
Two cycle billing.
Two cycle billing means the credit card issuer charges interest the first month that you don't pay your of balance in full. Always read through your terms and conditions on your credit card bill and if you have any questions just call the credit card company and ask questions!
Copyright 2005 Fern Kuhn, RN
Specializing in Diabetes
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