Credit Cards: Those Cards that Cause More Harm than Good

There are several types of credit cards out there. However, some of these do pose a risk to those that end up getting them. One such risk is the credit card that offers the person a chance to take existing balances and put them onto this new credit card. It sounds so great, the person is going to pay a lower interest rate and they are getting this combined into one payment. What is there to lose? This is the thought that most people have. However, the person should read the fine print. When they are getting these sorts of credit cards there is a onetime fee for the transfer of these balances, and in some cases that low or zero interest rate is not going to apply to balances that are over a certain amount. And this amount can be ridiculously low, such as if the balance is over fifty dollars the interest rate becomes twenty percent.

These types of cards usually offer a low introduction rate that may be zero percent for the first six months. If the person can pay down the balance within that time frame that is fine. However, if the person thinks that they can just go over the six months, this is when they are going to find that they could have made a bad decision. In this case, the interest rate may become so high that the person is basically paying double interest when compared to their other credit cards.

These types of cards that are going to get the person in one way or another are usually offered by companies that specialize in credit cards. That is why several people prefer to get their credit cards through a bank or a credit union, and this is a wise decision. However, that does not mean that all credit card offers that come from these companies are bad. The person just has to be certain that they are reading the fine print in order to understand just what they are getting themselves into. They want to avoid any credit card that is going to put them into a bigger financial mess and ruin their credit.

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