Every week it’s a new offer from the same ole’ credit company inviting you to get a new card. They entice you with offers like a low introductory rate, cool designs, no annual fees, and whatever else they think you’ll fancy.
Each day you probably look at these offers, consider them, and sometimes even apply for them. I mean, they’re pursuing you so of course they want you to apply and get their card right?
Credit card companies are always using different methods to get unsuspecting consumer to apply for their cards, here are three popular catch phrases you’re likely to be enticed by according to U.S News.
- You’ve Been Pre-Approved. Actually, you’re not and still have to send in all your information. Unless you have an APR set in stone you’re also more likely to receive an interest rate that’s higher than you expected. The company will also be pulling your credit report which could hurt your credit score.
- Cash Back & Other Rewards. These cards are popular because they promise the cardholder something in return. It’s easy to see that you’ll get something whether it’s a big bonus or rewards but it doesn’t come so easily. Usually those sign-up bonuses are only available if you charge a certain amount of money within a set period of time. The rewards or cash back offers may only be available during certain times or maybe there are limits on them. Always read the fine print!
- Low Introductory Rates. Usually there is a very low percentage rate in big bold print on the envelope. Just as with pre-approved cards though you still have to apply and the company will still pull your credit. If your scores are low and you have delinquent payments on your credit report the credit card company is taking a higher risk giving you the card, so you’re more likely to get a higher interest rate. Don’t assume that just because you’re pre-approved and there is an amazing APR listed that you’ll automatically get that rate.
If you’re looking to build your credit make sure you do your research about what credit cards may be right for you situation. Instead of being lured in by gimmicky sales tricks be a wise consumer who takes the time to learn all they can before taking on any new line of credit.