Watch Out for Offers from New Credit Cards
It is likely that you are receiving letters for new credit cards with offers that seem too good to be true. Well, many times they are in fact too good to be true. DON’T GET FOOLED BY THEIR TRAPS!
You may be receiving letters that offer you deals such as if you transfer your balance with your current credit card to a new credit card, you will have 0% interest rate. However what you do not know is that in place of this interest rate, they have raised the fee for the transfer by an exorbitant amount. For example a card may charge you 5% on your transfer, so if you are transferring $10,000, you will be paying a $500.00 fee right away, PLUS the interest rate could be raised after that!
This is not to say these offers are always going to always be bad, just do your research before you get stuck with a bad credit card offer. For instance, cards from credit unions typically have much lower fees than other credit card companies. It is important that you compare the promotions, fees and interest rates for different credit cards if you are thinking about switching cards or opening a new account.