The New Credit Card Catches

After the passage of new credit card rules and regulations designed to provide more protection to card holders, there are still a number credit card gimmicks and catches that consumers have to watch out for.

Even with the reduction in credit card fees and excessive late payment fees, there are plenty of “got ya’s” that can make your credit card billing experience a credit card nightmare.  When you receiver new credit card offers in detail, you can see the dizzying array of catches and conditions buried in pages of tiny print.  These seemingly innocuous conditions and charges can cost you an unexpectedly high amount of money.  The best way to avoid having unexpected rate changes and charges on your new credit card account is to be aware in advance of the most common credit card catches.

One of the biggest in the credit card industry that has not changed are credit card annual fees.  Many credit card companies require an annual fee for the privilege of simply having a credit card account.  Credit card annual fees generally range from $35.00 to $50.00; however these fees can be much higher in some cases.

These fees are sometimes marketed where the first year’s annual fee is waived.  Unfortunately, the fee waiver during the first year may just lull the credit card shopper into comparing card with annual fees and those without annual fees in the same manner.  Consumers should me especially mindful of credit cards that offer reward points or airline miles that may also charge high annual fees.

Short term low introductory credit card rates are barely mentioned in the new credit card rules and regulations.  Many credit card companies offer great introductory rates for the initial months of an account as a marketing scheme to get new customers.  Credit card rates that are marketed as low as zero percent can certainly be a boon to a new card holder as long as the borrower understands all of the terms and conditions of the offer.

Credit card shoppers need know how long the great introductory rate lasts and under what conditions the low rate can be taken away.  It is also important to know if the low introductory credit card rate applies to balance transfers and new purchases.

The recent regulations place significant caps on penalty fees.  Late payment fees have been changed considerably but they are far gone.  While there are restrictions on late payment fees, almost every credit card offered in the U.S. imposes a late payment fee.  Late payment fees still vary widely between credit cards, don’t assume your card has a ultra low fee or no fee at all, the odds are it comes with a fairly steep penalty if you miss your monthly credit card payment.

Before applying for a new credit card, read the current credit card terms and conditions that can be found on the online credit card application to help determine which credit card best fits your needs.  Lowestcreditcardrates.com helps consumer’s research credit card offers to help find the best credit card with the lowest credit card rate.