Credit Card Teaser Rates Fool Many Consumers
What You Need to Know before You Get that New Credit Card
Credit card teaser rates present a problem for many consumers. Who wouldn’t love a low interest rate on their credit card? Credit card companies offer incredibly low rates to consumers in an attempt to get them to apply for their credit cards. However, credit card teaser rates are just that a “tease” that doesn’t last as long as you would like it too.
The Honeymoon Doesn't Last Forever
Consumers fail to realize that when they apply for a credit card with a low introductory rate that rate will not last very long. The introduction period will fly by in a few months. And after this period is over, it will be back to the high interest rates.
It's Never a Sure Thing
Also, just because you apply for a low interest credit card, there is no guarantee that you will receive that card. Credit card companies may judge your credit score to not be high enough for the low interest rates. Therefore, they send you a credit card with a higher interest rate instead of the lower rate card that you hope for. That is why it is very important to read the fine print.
Playing the Game
Don’t get me wrong. There are extremely savvy consumers that out there that beat credit card companies at their own game. I have known consumers who take advantage of 0% offers for six months on cash advances. They basically get the credit card and take a cash advance for $5,000 dollars. Then they put that money into a six-month CD. Interest accrues on the CD, and the original principle is paid back to the credit card companies. This finagling is not for everyone. Many consumers simply have too many expenses to make this a reality, but you can keep it in mind for the future when your circumstances change.
The name of the game when dealing with credit card offers is to not get “teased” by them. Understand the fine the print on all offers and use the cards accordingly. Don’t get hit with high interest because you neglected to read the terms and conditions on your new credit card.