Is the Low Interest Rate Credit Card a Boon or a Ruse to Hook You Into Debt?
Today, everyone has a credit card. As soon as you become 18, a credit card is high up on the 'to have' priority list. And it should be this way, too. What can you actually do without a credit card today? You cannot shop, you cannot drive, you cannot even surf the Net. Credit cards are not a luxury item anymore, they are a necessity. This necessity is fuelled by the fierce competition that exists today between the competitors who provide plastic money. Since the interest charged for the cash advanced is very high and the convenience that comes to it matches the cost, the credit cards are a hot commodity both for the providers as well as the consumer. Due to the heavy competition, there are a lot of incentives floating around meant for grabbing the attention and patronage of the consumer. The Low Interest Rate Credit Card - What You Make of It The credit card is a profitable product for it providers because it charges high interest on the outstanding amount. It is easy to get into debt when all you need to do is sweep the card to buy anything and everything. Once you are in debt, the provider will reap the benefits because you are hooked into paying them the money lent to you along with the huge interest charged. So what is the profit of the provider if they offer you a low interest rate credit card? Why would they want to share their profits with you? The answer is easy and quite obvious if you look more deeply. They want you to use their credit cards. And what is wrong with that you will ask? More so when they provide you with a low interest rate credit card. There is More Than Meets The Eye Sometimes, the low interest rate credit card is just that. These cards are meant for a special market segment such as students, who actually do not have too much money, but would like to use the advantages of the plastic money. Sometimes, the low interest rate credit card is only a ruse to get you hooked to a certain brand of credit cards. In the latter case, the provider would mention somewhere in small print that the low rate of interest would be valid for a fixed time limit, say 6 months to one year, and then it will revert to the market or standard rate of interest. This is why it is very important that you read the terms and conditions carefully before accepting the offer.
Latest News About Credit Cards:
Questionable purchases made on Knox Co. credit cards (WATE 6 Knoxville)
Knox County staff are prohibited from making "split purchases" and personal charges on county-issued credit cards, but that's what an audit uncovered recently. Credit Cards Cut Off Gas Purchases (AP via Yahoo! Finance)
So you're at the gas station filling up your vehicle, and without warning the gas pump shuts off. What? The tank isn't full, and you know your credit card isn't over its limit. Credit Cards Stolen (WSAZ NewsChannel 3 West Virginia)
Police in Huntington are on the lookout for two men who they say broke into a car and stole credit cards and then used them at Wal-Mart. Police looking for three suspected of using stolen credit cards (The Nashua Telegraph)
LONDONDERRY -- Police hope someone can identify two men and a woman who are suspected of using several stolen credit cards around the region. ... How Credit Cards Affect Your Credit Rating (Investopedia)
"I tell you Doris , he was making $150,000 a year and had been working at the same place for a decade and they wouldn't approve his loan! They told him straight up that no credit history means no loan - all because he didn't have a credit card ."
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