Credit Card Offers

The huge bulk of credit card offers you have are just and ethical. But there are two things to look out for that some credit card companies have got been known to draw on unwary customers. These tactics are perfectly legal, so your lone resort to preventing them is to be alert.

The old come-on and switch. You apply for a great credit card that gives you dozens of frequent-flier miles, hoping to set all of your shopping on it, and then head to the Commonwealth Of The Bahamas in February. When and if you get that card, survey the terms carefully. If you don't measure up for the great card, the credit card company can direct you a completely different card with different terms--without telling you.

Cash advance fees and rates. Read the mulct black and white on your statement and you'll see it's a very bad thought to take cash out on your credit card. Your card might have got a really low rate for purchases, but the rate for cash advances is much higher. And there is no saving grace period--you begin paying interest right away.

Aside from paying a high rate on the cash you take out, you're going to pay a fee, usually 2 percent to 4 percent of the amount advanced. And your payments will be applied to the lower-interest balance before they are applied to your cash advance. Don't get yourself into problem with either of these two errors ... read the terms of your credit card offers carefully before you trip them.

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