We’re coming upon the time of year when some people are realizing that the holiday season is going to strap them financially. I am not going to preach and say you shouldn’t get a credit card to buy presents for the kids and family. I think most of you know that and are probably sick of hearing about it.
What I am going to do is point you to a few articles to read before you begin filling out any application you can get your hands on.
- Dumb Little Man – 9 things to Consider when choosing a Credit Card
- Dumb Little Man – Things you don’t see in the T/Cs
- Get Rich Slowly – The Only Credit Card Guide you will ever need
- The Federal Reserve – How to Choose a Credit Card
- As many as three different interest rates for different transactions, such as one for purchases and another for cash advances, with rates for purchases ranging from about 8 percent to 19 percent.
- Penalty fees for making a late payment or exceeding a credit limit, with the latter averaging $31, up from $13 in 1995.
- A higher interest rate — sometimes exceeding 30 percent — as a penalty for paying late or other actions.
Some credit card issuers use a billing method that charges interest on credit card debt already paid by the consumer, the study found.
There are clearly other great articles on this issue. If you have a resource that you’d like to add, feel free to leave it in the comments. If it’s blatant spam, it will get deleted.
Source of the GAO Excerpt: Associated Press via Yahoo News