Don't fall for this Credit Card Co scam

[SW FL Dem]

We always pay off our credit cards in full every month. However, this summer, we redid our kitchen and charged all our new appliances, the bill was hefty and the credit card company offered us a rate of 1.9% on charges made that month. It sounded pretty good until I read the fine print and started asking questions. Nowhere do they tell you that if you have a balance (including a special low-rate balance) you will lose your grace period for new purchases. You may pay 1.9% on the special balance, but everything else you charge will bear interest at your normal rates starting on the day the charge is made, even if you pay the new chargesin full. The credit card company will take all your payments and pay off the lowest rate balance first,then apply the payment to higher rate charges. You end up paying a lot of interest on charges you otherwise wouldn't pay interest on, sometimes at rates as high as 18%! The ONLY way this would work would be to stop using the card until the lower rate balance is paid off.

[GreenPartyVoter]

1. My head hurts trying to take all that in.

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Save the Gulf:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=106&topic_id=22507&mesg_id=22507

Then save the nation!
http://timeforachange.bluelemur.com/electionreform.htm

[brentspeak]

2. All credit card junk mail originate from Wilmington, Delaware

That city seems to be 'credit card central'.

[LynneSin]

3. Yes and I work for one of them

At least we're not the Petrochemical State like our neighbors in New Jersey.

[Verve]

4. Beat them at their own game.

I got a credit card with 0% interest on transferring balances. However, if I used it for other purchases the % is astronomical. To keep my 0% interest for my transferred balance, I have to use the card once a month. Therefore, once a month, I use my card to by a $1.00 soda on my card. It's been great.

(However, they may have figured this out because they stopped this unlimited offer and now there are minimum monthly purchases on all the credit card offers I now get in the mail. I'm hoping my card agreement continues to be grandfathered in. So far, so good.)

[SW FL Dem]

5. Yeah, I considered doing that

I was just going to leave the thousands of appliance charges on the card and stop using the card. There is no requirement that I use the card to keep the 1% rate. I'll just use my other card during the few months it takes to pay off the balance. Unfortunately, many people see the 0% offer and don't fully comprehend that rest of the deal.

[Verve]

6. Exactly! The C. C. companies counting on us not to read the fine print!

That's how they make their money. It's so pathetic.