Sharing Daily Discoveries About Personal Finance And Business Topics

Always Be Weary of Promotional Credit Card Interest Rates

financial planning

I was reading some incredible stories today of people who signed up for these low interest credit cards where to entice people to sign up the offer was something like 2% of the entire balance until you pay it off. Essentially, you can treat it like a bank loan where you can take a cash advance option for say $10,000 and then only pay 2% once until you pay off the balance.

Of course, in the fine print it indicated that the rate could change at anytime. Guess what? After a few months all those people kept revolving their routines around taking cash advances out of the card with little thought about paying it back anytime soon. All of a sudden, they are then told that the interest rate will be changed to about 20% now. Saying that they are definitely paying for it is an understatement.

Living life through a credit card is risky enough as it is I’d say which no one should be doing. But this example sure shows you that if you were thinking of getting a free ride of sort through these types of promotional credit cards that you better think twice.

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