Credit Card Offers
The vast majority of credit card offers
you receive are fair and ethical. But there are two things to
look out for that some credit card companies have been known to
pull on unwary customers. These tactics are perfectly legal, so
your only recourse to preventing them is to be alert.
The old bait and switch. You apply for a great credit card that
gives you tons of frequent-flier miles, hoping to put all of
your shopping on it, and then head to the Bahamas in February.
When and if you get that card, study the terms carefully. If you
don't qualify for the great card, the credit card company can
send you a completely different card with different
terms--without telling you.
Visit www.amex-visa-mastercard.c
om for a list of reputable credit card offers.
Cash advance fees and rates. Read the fine print on your
statement and you'll see it's a very bad idea to take cash out
on your credit card. Your card might have a really low rate for
purchases, but the rate for cash advances is much higher. And
there is no grace period--you start paying interest right away.
Aside from paying a high rate on the cash you take out, you're
going to pay a fee, usually 2 percent to 4 percent of the amount
advanced. And your payments will be applied to the
lower-interest balance before they are applied to your cash
advance. Don't get yourself into trouble with either of these
two mistakes ... read the terms of your credit card offers
carefully before you activate them.
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