The hidden cost of your credit cards
There are many hidden tricks that credit card providers use to squeeze a few extra dollars out of you each month, so here’s some to watch out for.
You card issuer may offer you a ‘grace period’ which on the face of it means that anything you buy using your card during that time is interest free. This is often not the case; many companies neglect to tell you that purchases during your grace period are only interest free if you settle the full outstanding balance of your card at the end of each month.
An introductory offer of 0% interest on balance transfers may seem really attractive, but check what the rate goes up to once that period is over. It could well be a lot higher than the rate you’re already paying so in the long term, you’ll pay much more than you would have done anyway.
You may also not be aware that over-limit fees will be added to your account if you exceed your agreed limit. This could cost you up to $39 and what’s more, if you don’t bring your balance back under its limit that month, you’ll get that charge reapplied every month you’re over the limit.
Read the fine print and don’t get carried away by what seems to be a great deal. Remember the old adage – if it looks too good to be true, it probably is!