4 Common Credit Card Traps You Should Totally Avoid

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Cash advances from credit cards are the costliest money you can ever borrow.

Cash advance rates are often several points higher than purchase rates. They normally range from 20% to 25%.

This is really way higher than the average purchase rates of 11% to 14%.

Furthermore, you normally do not get a float on these transactions plus an extra fee is added on to your regular interest charge.

Ouch!

2. Taking advantage of credit card checks.

Credit card companies will tempt you on a regular basis with those credit card checks that you receive in the mail.

Beware!

Those credit card checks for balance transfers or to pay off purchases are usually treated as cash advances.

Sure, they may be an easy way to purchase things or get hold of extra spending money. However, again it comes with a catch.

The rates that you will be charged with can be usurious rate plus, banks will also add some transaction fees to it.

It’s as costly as using cash advances. Simply just avoid them.

1. Getting lured into “premium” card offers.

Do not be lured into getting those “premium” cards such as those Gold, Silver, Platinum, or “whatever metal name they can call them” cards.

The only significant premium that you will get is the extra amount that you will have to pay in terms of higher annual fees.

Besides the fancy look of the plastic card and the so-called prestige that comes with brandishing one in front of other people, the benefits you get from it are really not worth it.

However, if image is more important to you more than anything else, then be my guest and get yourself a one of those fancy, “prestige-laden” premium cards. 💰