Beware of Credit Card Scams
If you have a credit card, you need to keep reading this article about credit card tricks and credit card scams. While you might think your credit card company is there to provide a service, don’t be fooled into thinking it won’t try to make as much money out of you as possible in the process.
There are more credit card tricks doing the rounds than some people are aware of, which means you owe it to yourself to make sure you know everything there is to know about the company with which you are doing business.
Check out these common credit card tricks and scams—and then make sure you aren’t one of the millions of people falling victim to them every single day of the week.
- Annual charges: Annual charges used to be a thing of the past, but not any more. These credit card scams are making a comeback, and many people think it’s because the credit card companies are under investigation for other extortionate charges they can’t justify. Make sure you’re not being charged for the privilege of simply having a particular card. If you are, go elsewhere and save some money from this credit card trick.
- Transfer fees: Cards which offer 0% interest on balance transfers might seem like a gift from above, but they can come with a nasty credit card trick as well. If you transfer a balance of $5000 onto a new card to take advantage of zero interest, expect to pay something in the region of $100 to do it. That’s what a standard 2% transfer fee will cost you.
This is one of the most prevalent credit card tricks being used today, although there are still a few cards which don’t apply this charge.
- Low repayments: Sounds like a benefit doesn’t it? While it might be easier for people with a high level of credit card debt to make lower repayment amounts, they are steadily increasing the amount they owe. It’s not uncommon for people making minimum payments to knock very little off their actual balance, with the majority of the payment being sucked up by interest rates.
This is one of the credit card tricks that can have you paying off your card for many years to come. What’s the moral? Pay off as much as you possibly can each and every month.
- Beware the credit card checks: They look like normal checks; they act like normal checks—but this is just another one of those credit card company tricks that is designed to hand you plenty of money with one hand and take away plenty in interest with the other. Before you use a credit card check, be sure you know how much it will cost you to do so.
- Avoid payment protection insurance: While the idea of any kind of insurance is to provide coverage if things should go wrong, the insurance offered by credit card companies is another one of those nasty credit card scams.
When you compare the amount you pay to the benefits you would get if you actually claimed, there is little point in paying it. You would be better off using the money those premiums would cost you to pay off more of your balance each month.
- Late payment on a low-rate balance transfer: If you have a great rate on a balance transfer, make sure you pay your bills on time. Even if you have a perfect payment history with your credit card company, if you’re a day or two late with a payment, your balance transfer interest rate will automatically rise from 0% or 4% to the standard 20% plus.
Once you realize that credit card tricks are there to make more money off you, you can make sure that you are better able to avoid as many of these credit card scams as you can.
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