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Buyer -- Wear when you're signing up for -- new credit card you'd better know what tricks credit card issuers have up their sleeves.
And personal finance expert Vera Gibbons.
Five credit card traps that you would want to avoid -- -- got AMP.
The first when you say is 0%.
Introductory what you're seeing is -- percent bounce transfer offers out there a lot of them out there but.
First of all in order to get them have to have a really good credit in mid seven hundreds in that range secondly.
Is your present.
They have been in interest -- does not necessarily apply to new purchases so that's be subject to much higher interest rates usually have to make a concerted.
Effort to pay after balance within the inspectorate -- which is generally -- -- twelve to eighteen months in some cases isn't as long as 21 months and also got to watch out for late fees.
Late fees yes they are capped because of the credit card act but nevertheless they are out there they're also penalty rates they could take you right to the to -- -- if -- late.
So you look out for all of this kind of thing and there -- damages your credit score as well oh yeah absolutely also.
Fixed rates are not always fixed.
Right now a lot of us have variable rate cards these days which are subject to the swings in the market place but -- how to -- rate card.
All that means is at the issuer has to be noticed that there raising your rates have something to think about you might want to open your mail from -- issue in 97% of us don't hit.
We don't need to look at is -- as -- and we are therefore -- -- -- -- -- -- -- count self also I think you're being good if you don't use your credit card too often but you can get penalized that right.
You've got to keep an active take them out to dinner every now and then your car with a tank of gas and over the case may be.
Because inactive accounts some of them are actually getting close altogether and again.
Detrimental affects your credit score less but not least we should -- know this but another trap is that minimum payment.
Right now a lot of -- this -- statements -- to get -- written stating you can see the effects of making your minimum payments and you can also see how long it would take you to pay off your balance if all you're doing is making a minimum payments.
And how much you have to pay each month to pay up your balance in three years but -- doing on your banking online.
This information is not as transparent -- a 5000 dollar bounce 14% -- PR and all you're doing is making the minimum payments it's gonna take you 22 years to pair off.
And cost about 6000 announcement -- 6000 dollars in interest to pay off.
5000 dollars in charges and that's I'm crazy in the bottom line here is that you should probably just charged with you can pay.
In full ideally yes they were assuming more -- these days you look at the latest -- -- statistics.
They're up we're back charging again yeah it's unfortunate because it is there are lots of -- -- -- just noticed Vera Gibbons thank you actually -- joining us.
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