Credit cards pitfalls to be aware of

14 April 2009

Credit cards are a dangerous luxury many of us indulge in. While they offer great convenience and opportunity to get the items we want with conditions attached, there are also a number of lesser known condition pitfalls that many credit cards users fall into.

These can include:

The rising trend for credit card issuers to now only offer 44 interest-free days instead of the standard 55 days, based on profit margins. This means that by extending less credit on an interest-free basis, credit card issuers save more money. At this stage is appears that these cut backs on interest free days are mainly be put upon customers that never actually need their interest fee days, that is, they pay of credit cards bills before due dates. However, it is predicted to become more commonplace with credit cards issuers.
Be wary of credit cards with the lowest monthly repayments as in the long run this will equate to a far greater amount of money then what is owed. For example, your average $3000 credit card debt would actually take over 40 years to pay off if only the minimum repayments were made.
Credit cards that calculate interest in the most expensive method. This would mean comparing the fine print of different credit cards to see which is best for your spending style.
After completing a balance transfer, make sure you do not put any more charges onto that credit card until all old debt has been paid off
Credit cards that charge different interest rates

Ensure you are getting the most out of your credit cards and look at the top ten credit cards

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