There are numerous credit card providers which prey on the ‘young’ credit card population. These providers follow a strict advertising policy which also includes enticing consumers to sign up for their cards. These companies claim to offer products which promise to fight debts and overspend the population.
Here are a few ways these credit card payers lure you into signing up for their offers:
‘ A scheme such as the one offered by many credit card providers
‘ A special incentive program offered on websites or radio and TV channels
‘ This special incentive, which benefits consumers includes up to 5 percent cash back or percentage rebates, is offered on websites which are littered with ads, mostly promoting their products.
A ‘merchandize membership’ which is also provided on web sites or radio and TV channels. Most of the Web sites offer more features and benefits than the introductory offer, often including 0% annual percentage rate or APR for 6 to 12 months. This rewards you on whether you pay the bill on time. This introductory offer does increase the chance of a payday, however.
‘ A special website that offers promotional offers such as coupons, gifts and discounts.
Online stores and departmental stores offer special ‘freebies’ and packages designed to appeal to the prospective consumer; these packages sometimes have a special or introductory APR that ‘falls off’ after 12 or 24 months.
Online shopping sites also offer special or introductory APR ‘free shipping’ for certain purchases by direct sales agents.
The American Express web site also offers special introductory APR rates, sometimes free for only a limited time.
If you’re in the market for a new credit card, you should be wary of a site offering low APR and low APR APR products or services – at least until they are paid off.
Online merchants often advertise products that come with high interest rates and annual fees. This adds to the existing negative impression created by the credit card industry.
Beware of discounts, rebates or savings offered by online credit card providers. If you sign up for a special credit card offer provided by a site that offers a discount or rates with a company you never meet the high APR standards, you may be in for a long night.
‘ Bonus Features?
Many special introductory APR rates offered by online credit card providers include bonus features, such as 0% interest for a fixed period of time as part of the offer or cash back or return on investment for purchases during the period of time purchased. These extra benefits are often optional or not worth bothering with if you are already on the hook for such purchases.
How does it work?
The Bonus Feature
The ‘Bonus Features’ offered by online credit card providers or site operators are often related to new, lower interest cards offering special incentives and lower interest rates and terms. The bonus features typically outweigh the negatives by offering a unique opportunity for you to swipe a positive card purchase and savings.
If your plan is to offer special 0% interest rates and APR plus special spending possibilities, get a site that offers 0% annual percentage rate or APR plus special spending possibilities. Then visit your bank, credit union, store or other financial institution and inquire about APR and other terms that may differ from one type of APR to another.
A word of warning about APR plus special exciting savings options: you don’t want to sign up for a 0% APR APR plus special cash back or return on investment for spending. Use caution, though. The prospect of APR plus special 0% APR, though special, special savings benefits may outweigh the savings benefits.
Credit Card Warning Signs
It has been a sad and strange and depressing month for the UK financial industry. To many people this may seem a distant memory, but the real news is nearly upon us – with much more to come. The Bank of England has today announced that ‘hard working’ and ‘experienced’ accountants have resigned over the handling of problems relating to the implementation of the ‘Universal Payment Clearing Service’. This has caused great concern among customers and, at times, has caused quite literally financial casualties. The reasons behind the sudden change of management are not entirely clear, but one thing is certain – many people were left with a debt haphazard financial mess that is difficult to fathom. So what has happened to this poor, struggling service? Another question surrounds the apparent success of this latest policy maneuver: is it all good? With many not too keen on the idea of having to transfer their outstanding credit card balances onto the service, the users of this service have continued to make steady repayments until the balance suddenly falls down. These users include the Bank of England itself. Many of them.