No doubt, credit card deals with zero percent introductory rates look enticing and balance transfer offers are no exception. Probably one of the reasons of their prevalence is big profits for credit card companies rather than for credit users. Why is it so? We can learn a hard credit lesson only when we go through all the difficulties. Most credit users are ready to acknowledge the fact that nothing in this life is for free and still they believe sincerely in those incredible credit card deals with false promises. Very often balance transfer cardholders misuse those introductory rates just because they are unaware of very important details.
It's amazing how many credit consumers make mistakes for the lack of information. The most disappointing in all our credit misfortunes is that we admit our fault and can't do anything about it. The researchers found that nearly two-thirds of credit customers mishandle those balance transfer credit cards with intro rates. To be more exact, about 15,000 credit users make new purchases as soon as they obtain a new credit card.
If you are an experienced cardholder, you know this typical mistake of making purchases with your balance transfer plastic. The point is that your new credit card with low interest rates somehow turns out to be rather troublesome. In other words, you fall into a common credit trap of doing shopping with a balance transfer card. It sounds ridiculous, but you will hold a low rate balance and face high interest rates on purchases.
According to the survey, more than half of those customers who make such mistakes do not realize the real value of these purchases and continue to use their balance transfer plastics. The truth is hidden in the lines of that notorious fine print of your credit card agreement. And most credit missteps you take are probably caused by your unwillingness to read this tiny print.
Another catch of 0% rates credit card deals is the amount of rates right after the introductory period. In truth, your zero interests may bump up to 16%. Does it seem a great deal now? In truth, many credit card companies do their business like this. They expect you to make false steps, for their goal to make money from you. Very profitable for them and very costly for you!
Typically, such temping credit card offers are intended for people who struggle to make both ends meet. Their naive hopes to solve all the problems with next credit card will obviously result in more difficulties. Not to mention shopaholics whose addiction to everything that is for free puts them into gigantic credit troubles.
Likewise, you may fall victim to another credit trick, i.e. the order of your payments. What is meant here? You pay off the balance amount first, and so your higher interest rate charges will be laid up in lavender. Let's say you transfer $5,000, and then you decide to charge $10 for a nice shirt on the sale. So, your payments will go toward that $5,000 first. This is the way credit card companies make money.
It must be mentioned that all the above-mentioned credit tricks are absolutely legal, though you may find them unfair and frustrating. Before making such deals, learn to be prudent and vigilant when it comes to credit card terms and features. Bear in mind, all that catches your eye is just an advertising trick. Make sure you know everything about the card you want to obtain. This way you will never face those nasty traps.
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There are so many tempting credit offers around! But I'm sure, most of these tempting features are just to attract more customers and then to trick money out of them.
I wish, I have read this article earlier, then I wouldn\'t have made so many mistakes...
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