[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]
We recently concluded a series which dealt with increasing our awareness about some common caveats of the credit card game. Knowing about these oft practiced sly tricks can help us save hundreds of dollars and hours of head ache as well as stress. It will also aid us to be better debt managers while maintaining a strong handle on the credit card game. Knowledge is power and often we end up paying a heavy price for our ignorance.Without further ado we present a compendium of Top 10 Sneaky Credit Card Tricks. Enjoy!
"Often credit card companies charge various types of sneaky fees that catch us unaware. They do list all fees in their fine print and we do agree to abide by them when we open an account. But often there are some practical difficulties which might cause us to err. And then we end up paying heavily. One of these fees is over the credit limit fee .....
"There are many credit card programs which do not offer any grace period. A wise strategy is to simply avoid such cards whenever possible .....
"Most credit companies charge high late fees to the tune of $35 to $39 per late payment. So a smart credit card user has to be careful to avoid this trap .....
"Often we receive attractive "convenience" checks from our credit card companies. The convenience offered is the ability to write checks against our credit card account. Beware, even the most tempting offer comes with hidden fees that make the risk far greater than the reward .....
"During the holiday season when our card balances are usually high, credit card companies often send offers which invite us to skip a payment. This might appear to be helpful, more so since it has come at an opportune moment when our balance is high and our wallets stretched. But be careful, whenever the credit card company tries to be helpful there are strings attached .....
"To boost their profits, credit card companies often lure their clients by sending lucrative offers with lower minimum payments on debts. The lowered minimum payments can be as low as 2% of our owed balance .....
"Cash is king when its not a debt but has been accumulated as a result of our savings. And like convenience checks, cash advances from our credit card accounts is a terrible mistake. We should avoid it at all costs .....
"It is a known fact that credit card companies attract new clients by advertising low "Fixed" APRs. Newbies might think that APRs on their balances are fixed till they pay it off, right? No dear, we are nowhere near the truth .....
"If we have a good credit history, we'll receive plenty of 0% APR offers for new cards from reputed credit card companies. Congrats! Beware of the fine print though. Perhaps it's time to grab a magnifying glass and read the fine print well .....
"Once we sign up for a credit card we frequently get offers to sign up for a disability insurance or purchase a card theft insurance. Often when we call our card's customer service they try to sell us these programs. Simply avoid them, they are not worth it .....
If you are aware of more sneaky tricks cooked up credit card companies please feel free to share them. We are looking forward to hear back from you.
Image Source(s): iStockPhoto
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