4. Going for that Great Credit Card Offer
A zero percent interest rate sends some consumers into paroxysms of pure joy, until you read that the rate is only temporary, and that so many conditions apply that you have to hire an interpreter with a magnifying glass to decipher the whole deal. This is especially true for consumers who have bad credit, due to a job loss or other circumstances that lowered their FICO score. Some credit card companies are in the business of targeting bad credit customers who are trying to make a fresh start, saying they will help you “improve your credit score”, by using their card. The interest rate suddenly zooms and the line of credit is so low that many can’t help but rack up over the limit fees, and late fees, putting them in a worse financial situation than before–and looking for another card to pay off the first one.