Unhappy that many customers use their credit cards wisely, i.e. paying off their balance at the end of each month, and with an eye on adding more stress to those in financial difficulty, some banks are deploying dubious tactics to snare unsuspecting consumers.
Most of us will admit to not quite spending the time we should do reading the terms and conditions when that new credit card drops through the letter door and onto the welcome embossed mat. But beware, not reading the small print may mean you fall foul to these hidden traps, a veritable dirty dozen!
1.Play poker online? Card companies used to treat online gambling payments as normal transactions but more commonly they are being treated as cash withdrawals.
2.Ouch! You thought that balance transfer was a naught percent deal, but no, watch out for lenders who will charge a balance transfer at the purchase rate!
3.Remarkably credit card fees are making a comeback - stay sharp!
4.So, you've got your new credit card and what's this? A stack full of cheques you can use for cash withdrawals! You will be charged!
5.'Oh happy days!' You notice on your most recent statement that your credit limit has increased - without even asking! Avoid the temptation to spend.
6.Be careful of cash withdrawal fees - withdrawals attract interest at high rates that regular purchases.
7.Who would have thought it - your least expensive debt will be paid of first leaving the expensive ones to attract more interest.
8.Applicants with good credit rates will get lower typical APRs, check before you sign.
9.This one's a doozy! If you pay late you may lose any naught percent deals you'd originally sign up for.
10.Sounds good, right, a monthly rate of 1.5%? Hang on it will compound to APR of 19.6%!
11.If you're going to be paying the monthly minimum you may only be paying off the interest instead of paying a percentage of the actual balance.
12.Finally, a personal pev of mine - insurance! Don't bother with CCRP (Credit Card repayment Protection) and PPI (Payment Protection Insurance).
As with all credit, credit cards should only be used to assist in the day to day cost of living. Always choose the right credit card for you and always read the t and c's!
