Understanding the Trends in Credit Card Practices |
With the period of economy tightening, we all look forward to the ideas and offers coming our way while choosing for a credit card. Some of these are really great while, others can add into your problems. So make a strong understanding of ideas and offers running in the market.
1. Wave and Go : This trend is on rise. Users usually swipe their card on the every purchase. But this practice has its own hidden dangers. Everyone will agree to the fact that money is easier to spend without realizing it. Small purchases adds up quickly and you can not figure out the amount that you’ve actually spent.
The “wave and go” technology works by placing a small computer chip with a tiny antenna that can respond to radio waves from the card reader right inside your credit card. These “wave and pay” cards are intended for quick purchases of $25 or less. There’s no signature required and no PIN number necessary. . Quite often, you’ll find “wave and pay” card readers at convenience stores, fast food restaurants, drugstores and movie theaters. While you certainly save time waiting in line and you’ll be using a hot new technology, it’s very easy to spend more than you planned. Avoid this trend unless you’re already very responsible with your credit.
2. Free Balance Transfers Are not Always Free : This is one of the common feature that credit card companies use to entice users to open an account. They offer you the convenient option of transferring your balances from other cards with a higher interest rate to your new card, carrying a lower interest rate. While saving interest is very important, be sure to read the fine print and do read about what your balance transfer fee is. Some companies may charge as much as $300 or more for their balance transfer fee- those “no fee” transfer promotions generally have gone by the wayside. You can also get a possible limit on the amount you are able to transfer.
3. Offering Great Rewards : This feature is much to the users delight. Everyone loves getting something for nothing and the idea of earning bonus points, cash back or frequent flier miles for every dollar you spend thrills everyone. However, users need to be cautious while using such features. There can be hidden charges of which they are not aware. without your knowledge.
Credit cards makes for a significant part of your financial strategy. But when the economy gets tough, do remember that credit card service providers are not in the business of saving your money. They are in the market to make their own money. Read all the fine print carefully before signing any document. And ask questions, in case if you don’t understand exactly what a feature is all about.
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