Most people have at least one credit card in their name. A credit card allows you to purchase items online and elsewhere, where you may need a form of credit to get approved. However, with all the options for credit cards out there, it can quickly become overwhelming trying to decide on just one. Especially if this is your first credit card experience, you could end up in over your head before you know it. You cannot believe everything you hear and your first credit card experience can turn into a nightmare if you do not proceed with caution.
One of the biggest problems that turn it into a bad experience is if you choose a 0% interest credit card that is not legitimate. The idea of one sounds like a good deal, but you need to go over the contract carefully, ensuring you are aware of all the rules and regulations and are not getting wool pulled over your eyes. Far too often, credit card providers will put the important details in the fine print, where most people will ignore it, scanning over and signing the contract, completely unaware.
Hidden Fees in the Fine Print
A few months or even weeks down the road, you may start to incur charges you were not expecting, racking up your credit card bill and causing you frustration and stress as a result. In order to avoid this from happening in your life, you need to ensure that you do not forget to weigh things before making your final decision. Otherwise you can end up in serious financial trouble, wishing you had never signed up for a credit card in the first place. The worst part is that you think you are going to save all this money, when in reality you would have saved more money if you had have gone with an alternative credit card. Look out for extra fees, such as a penalty charged for unused credit account. Also keep in mind that in most cases, with the 0% credit cards, the balance transfer comes with a very high rate. That means the more purchases you make, the more you will be charged at the end of the month, with an exceptionally high interest rate on top of the cost of your purchases.
When you first hear the offer of a 0% credit card offer, of course you get excited. The idea of having no interest charges on your credit card is clearly ideal, but it is not as good as it sounds. Once you are aware of the hidden charges and fees if any, you can feel more secure and confident in your decision. It is always important to take time and do research before deciding on a card. Only by taking the time to do this can you ensure you are making the right choice. With a certain investment of your time, doing some proper background research and after putting some thought and consideration put into it, you can decide on the right low interest credit card. It is more worth it to get a reliable, secure card you can count on that is not going to cause you problems in the long run, rather than jumping into things and choosing a credit card that ends up costing you a ton of extra money unnecessarily.
Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of http://www.newhorizon.org such as their continuous effort in giving out Credit Repair Tips. Also check NHBS list of Low Interest Credit Cards