While credit cards are handy and convenient, certain issues, such as additional charges or creeping APRs, made having cards more expensive than it already is. In order to not be suckered by certain practices, consider the following:
One: Watch out for credit card companies that offer dreadful customer service. Those that would have you jumping from one department to another until you get the help you need, 20 minutes later. Unfortunately, there are some card companies that has the worst customer service, with poor cardholders being turned over from one department after another and yet, they still could not get solutions to their problems.
Two: Know that receiving pre-approved card offers does not necessarily mean you are sure to get a brand new card in a short period of time. Getting pre-approved credit card offers simply mean that you have the qualification that these card companies are looking for and you are a great candidate for their card. However, certain factors still need to be reviewed before you do get their cards. If you do not qualify for their card, they could send you replacement cards. Note that before you sign on for this card, you need to read the terms and conditions of the card.
Three: Although balance transfer are attractive offers, there are some instances where you are better off leaving your money where it is rather than paying a steep price for balance transfer transaction. However, if you absolutely, make sure that you did a lot of comparison to determine which company could provide better rates.
Four: Generally, the terms and conditions of most credit companies are so hard to comprehend; you will need a lawyer to interpret most of them for you. Know that this is one of the most common tactics that companies use in order to hide the true cost of the credit cards they give.
Five: Watch out for skyrocketing interest rates. If you happen to own average credit cards, you may notice that the interest rates you need to pay are getting more and more expensive. Unfortunately, you will not notice these creeping rates because the initial offers are always excellent. The reason for this is they want to lure as many customers as they can so they are always coming up with bigger and better credit card offers.
However, as time goes by, these once affordable rates are slowly increasing until you realize you are paying more in finance charges and extra fees rather than the balance itself! To protect yourself from increased interests, be sure to find out how much the new rates is going to be as soon as the introductory period is over.