If you have ever taken out a home mortgage, you will know what a bad deal the new Rebate Credit cards offer is. Not only will you pay interest on the amount of the loan amount, but you will also be charged monthly the annual percentage rate (APR.) For one monthly payment, you will be charged, APR-free! This brings the amount of interest that you pay on your new credit card to four times the typical APR!
The new Rebate Credit cards have almost the same features as the traditional credit cards, but only two modifications. The Rebate Credit Cards also offer the option of getting your credit card details straight to your email box. This, of course, ensures that you will never receive these details should ever occur. Although a website like MySavingsCard.com guarantees no unauthorized charges, you should also be aware that there are other fees in place, too. Here are a few of them that you might want to keep an eye on:
1. Interest-free purchases. Interest-free purchases are those you make that you will be charged on your original credit card balance at the end of each month – whichever month you pay off the card. If you use your new credit card all the time and not make your monthly payment in full, you will be charged interest amount after amount at the end of the total monthly payments. Interest was charge for that month.
2. Online account activation/unlock required. As most online purchases are made with your credit card, you will be required to confirm that you authorize the purchases before the credits are applied to your account.
3. Penalty fees. Not only will you be charged fees for failing to make your monthly payment on time, but you will also be charged for making an “unauthorized” purchase.
4. Fraud charges. As with all other credit cards, there will be a scam charge.
5. No refunds. No refunds. Yes, there are always no refunds. This may not apply to new purchases made with your new credit card.
6. Up to (or exceeding) $25000 in minimum finance payment. Some cards may permit paypal account purchases to exceed $25,000.
7. Other fees. Most cards will impose annual membership fees, transaction fees, set-up fees, and online purchase transactions.
8. Manage your fees. There are no caps on the number of credit lines you can make on. For example, there are no caps on the amount of cash you can withdraw from ATM’s – or at a discount store you run up.
9. Limited lifetime benefits. What benefits will be offered after a purchase is made? Some cards automatically send out charges within 1 month (at which point you cannot make any purchases with them for more than 15 months).
10. Higher interest rates (higher than the APR you will pay). With a 15% balance transfer, you will have a credit card balance that is 29% higher than the APR you will pay.
If you pay off the balance month after month, you automatically pay off that entire credit card balance. That is a lot of money saved. This can put a real dent in credit card debt, though. In your pocket, a card can stand to lose a lot – $600 or $1,000!
If you have no credit history, this is not your worst nightmare – but it can be a little scary too.
Rebate Credit Cards – What You Need To Know
For the uninitiated, any promotional offer that offers 0% interest on balance transfers may actually be a good one. Well, assuming you are one of those who just makes a conscious effort to pay off your credit card in full each month. Plus, you might have already declared that you absolutely do not need to pay a credit card annual fee for your credit card.
There is an unspoken rule in the world of credit cards that says everyone is entitled to 0% interest on balance transfers, how that applies to you. You don’t have to be in debt to qualify, and it happens a lot. Unless you know what you are getting yourself into, it doesn’t really matter how much or how little you owe- it is actually your current cash reserves being used to make higher interest rate and types of balance transfers.
So what does that mean? Well, zero percent credit card offers mean that if your current cash ratio is a ratio it high enough, you can easily get zero percent credit card use- whether that be an automatic transfer or one that happens upon a shift in your personal spending habits.
This is what makes credit card companies so powerful.