Sometimes you find yourself in the market for a new credit card. Perhaps you’re unhappy with the service you receive with yours, you’re looking for something with better rewards or you just need a better rate. We don’t care what you need or want a new card for; we just care that you don’t fall prey to one of the credit card offers that is far worse than you might ever imagine. It happens to almost everyone, and it happens more than you might imagine. An offer looks good, you apply and the next thing you know you are frustrated, angry and worried about your credit. That’s why we are bringing you this list of red flags that are associated with certain credit card offers. Beware.
This is something that typically occurs with those who have less than stellar credit. You’re going to find that you’re paying fees that are exorbitant. Perhaps you have a card that comes with an initial limit of $500 to help you rebuild your credit. However, you then realize that your limit is also much lower because of fees that add up to more than $100 right away. These are not good cards to carry.
When a rate is really low, it attracts customers. However, you have got to read the fine print to find out what you’ll be paying once that initial APR period is over and your new rate sets in. Some rates are so high you cannot even reason using the card ever again.
Lack of Grace Period
Most credit cards come with a grace period. What this is, really, is a time frame that allows you to pay off the balance each month before your interest begins to accrue. Basically, you have to have a little time or you will pay interest on a purchase you make beginning the second you make the purchase. That’s not a great idea when you are looking to pay off your card in full each month to avoid this exact issue.
Photo by Getty Images