How to Know When to Choose Not to Lower Your Credit Card Interest Rate

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By Inkling
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As the interest rates increase on credit cards it's becoming easier to quickly accept what seems at first to be a good offer. Promises of 0.99% interest for one year may sound outstanding and yet the fine print says something quite different.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

Credit Card Offers

Step 1

Read the fine print with a fine tooth comb. The newest credit card low interest rate offer sounds like a sure thing. They tell you the new rate is for purchases and is good for six months to one year.
Step 2

Notice the fine print wording around the word purchases. Usually, if you are speaking with a live person on the phone or online, they may or may not say only-on-new purchases. Hard copies will say new purchases. Not noticing the difference may make a world of difference on any savings and perhaps end up costing more in the end.
Step 3

Keep in mind the word NEW because that's key to the offer deal. The interest rate is lowered only for new purchases and all payments will only go toward the lowest rate. The old purchases will remain under the old, higher rate until the new purchases are paid off or the new, lower rate has expired.
Step 4

Remember that a deal like this will lock the old, higher rate in on prior purchases so if you carry a high balance this deal could cost more than it will save.

Comments

ManyMusings said

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on 1/14/2009 I agree. ALWAYS read the fine print. 5*

woodsusa said

on 1/5/2009 Good info. This can be such a tricky decision to make, and credit card companies aren't always that helpful in giving all the info in 'plainspeak'.