Zero percent interest for the next six months, or even a year, on all balance transfers. No annual fees. Rewards points for everyday purchases. Choose airline tickets, hotel stays, car rentals, a variety of great brand-name products or just get cash back.

Zero percent interest for the next six months, or even a year, on all balance transfers. No annual fees. Rewards points for everyday purchases. Choose airline tickets, hotel stays, car rentals, a variety of great brand-name products or just get cash back. Low teaser rates and other deals sound great, until you find out what you’re really paying – if you find out.

What red-blooded American credit-card holder could resist such a deal?

Well, if you’re smart, maybe you.

Tantalizing offers like these from your bank or credit-card issuer are increasingly filled with traps that can pile on unexpected fees or trigger punitive interest rates, some as high as 35%. True, the details are spelled out in the fine print of promotions and cardholder agreements. You have to be incredibly diligent to avoid the tripwire.

The strategies that follow will help make sure you don’t get caught.

Trap No. 1
Bait and Switch: The Oldest Trick in the Book

You’re tempted by one of the many low-rate or zero-percent card offers you get in the mail claiming you’re pre-approved for the deal. But the fine print often contains qualifying language that can result in your getting a higher rate than advertised. If you do land the stated rate, you’ll often find that it applies only to balance transfers, not new purchases. Your monthly payments, however, will be applied first to the low-rate balance transfer, helping the new, higher-rate debt to grow. And if you’re late with just one payment, the issuer may well boost your rate on the whole amount outstanding, even though the low rate was supposed to be in effect for six to 12 months.

WHAT TO DO The cardinal rule of balance transfers is to take the card transferred to and put it in a dark place where you’ll never be tempted to use it again. Before you apply for a low-rate deal, make sure you understand the terms in the disclosure box and read the fine print to see what can trip you up.

To read more, please follow link... Credit Card Transfer Traps

Marie Claire Cooper is a Certified Management Accountant. She grew-up in Brewster, New York, U.S. and now working in an investment firm in Singapore. Please read more about practical tips on personal finance management at her blog at PERSONAL FINANCE MANAGEMENT GUIDE

http://personal-finance-management.blogspot.com