Best Credit Cards
Balance Transfer Cards
Reward Credit Cards
Frequent Flyer Cards
Cashback Credit Cards
Low Interest Cards
0% Purchase Cards
No Annual Fee Cards
Student Credit Cards
Gold Credit Cards
Platinum Credit Cards
Debit Cards
Corporate Credit Cards
Small Business CardsResisting the urge to make purchases using credit can seem impossible, especially when you see an offer that seems too good to pass up. However most of these “special” offers are designed to grab your attention and entice you into making a hasty purchase. Oftentimes you are sucked in by the ease of buying this “necessary” product only to find out that you may not need it so bad after all. This is why reading the fine print and taking the time to think about whether you really need that new credit card or kitchen gadget is so important. Here are a few common pitfalls that you should be on the lookout for when dealing with credit.
The Bankwest Breeze Mastercard
A genuinely cheap credit card with one of the lowest ongoing interest rate in the continent. Featured as “Cheapest Credit Card 2010″ by Money Magazine.
- 0% p.a. for 6 months (reverts to 10.99%p.a.) on purchases
- 4.99% p.a. for 9 months on balance transfers
- $49 annual fee
- 21.99% p.a. on cash advances
Most would agree that receiving credit card offers in the mail is practically an everyday occurrence. Passing up on a credit card offer that advertises a ridiculously low interest rate can be difficult. Unfortunately the majority of these pre approved offers are just teasers designed to spark your interest and get you to call the company. Only after a lengthy application process do you find out that you don’t actually qualify for the advertised rate.
Watch out for Introductory Offers
When you do qualify for the advertised rate it’s often an introductory rate that skyrockets after the initial 6 month to 1 year period. These incredible offers are specially designed to lure you into opening an account. Credit card companies know that once you invest your time into something you’re likely to continue the process, even after finding out that the deal isn’t so great after all.
Buy Now, Pay Later. Is It a Good Idea?
Another offer to be on the lookout for is one that allows you to buy now and pay later. This can be tempting for many people because let’s be honest, who doesn’t want instant gratification in life? The problem comes when the payments are due. There is something to be said for the age old saying, don’t put off till tomorrow what can be done today. If you can’t afford to make payments today then what makes you think you’ll be able to afford them tomorrow.
Besides considering whether you’ll be able to make monthly payments in a few months, you should also consider the total cost including interest. Sometimes it’s wiser to save your money for a few months so you can make a purchase outright or at least make a sizable down payment. This is especially true with luxury items like boats, designer clothes, and new furniture just to name a few. Low interest rates are great, but beware of the fine print that details the reasons for rate increases such as missing a payment. You also need to keep an eye out for hidden fees and balloon payments.
Bottomline?
A good rule of thumb is to always read the fine print and don’t overextend yourself. It’s easy to talk yourself into a great “deal” when you see a low interest rate or a buy now and pay later advertisement. The important thing is to be realistic about your finances and give yourself room to breathe when it comes to monthly payments. Passing up some of those “irresistible” offers can save you a great deal of hassle in the long run.
