Credit Card Offers What to Watch For

May 13, 2010 - PRLog -- As recently posted, it would seem that credit card applications are making a comeback. While America has faced a tough time financially it would seem big banks are back in business to produce new profits by introducing new credit opportunities with tougher terms and conditions. When receiving these fancy enticing offers carefully consider the following points within the terms and conditions and applicable fees. 

Annual Outrage. With new regulations in place on interest rates and fees banks have to replace revenue somewhere. Inabilities to raise rates have opened a new door of debt for banks to welcome new customers through when establishing new credit. Expect to see more annual fees to coincide with new card offers, forcing applicants to pay a fee every year just to have an open account.

Wanted: Rewards. Ones consumers reward is another consumer’s debt. Studies show, consumers who use reward cards make more purchases, carry less than the average balance, and are more likely to make timely payments consistently. That’s nice, but what about the other 80% of Americans struggling? For those with balances over 30% of their credit limit expect to see a hike in interest rates and fees with most major creditors.

The Roulette Table of Rates. Intro rates, Promos, balance transfers, etc are still being offered but with shorter terms and higher ‘go to’ rates once the time has expired, leaving you with an APR that could cost you 3x’s the amount charged after all is said and done. These are bait and switch tactics that have been used for eons by big business to hook line and sinker any sucker willing to bite.

Variable rates are on the rise too as banks can skip the credit card law's requirement for 45 days notice before raising rates. Fixed rates are rarely offered unless it’s in conjunction with an intro offer that will shortly expire. Fixed rates thrive in nonprofit debt consolidation programs and creditors will not grant or adjust rates for consumers to lower fixed rates unless the accounts are closed and consolidated with a third party nonprofit.

Balance Transfer Buy Outs. Balance transfer fees have increased as well with most new offers being mailed out to America. Banks are charging up to 5% of the transferred balance and some may tack on transaction and processing fees on top of that. To further, the interest rate on balance transfers has a shorter life span that it used to. What could once be a balance transfer at 0% for 12 months has since been changed to 0% for 6 months with major default stipulations and fees god forbid you miss or make a payment late.

Offers that are too good to be true are just that. If the credit card comes with special introductory rates and terms chances are they will surely make up for missed profits once those initial terms expire. Remember, the banks are in this to make money off you, not give free money. Your personal financial portfolio is not of their concern outside of earning fees.

Nonprofit counseling services that eliminate debt and improve credit seem to be the only logical solution for Average Joe to actually get out of debt without hurting their credit rating. By stopping fees and lowering interest rates to lower fixed rates, consumers are able to pay off their debts faster at a more affordable rate that fits within their monthly budget. Nonprofit consolidation counseling services can actually improve credit over time by making your payment each month and bringing your outstanding balances down faster with lower APRs. To speak to a BBB Rated A+ nonprofit org call 800-905-1563 and see how a certified credit counselor can help you be debt free and meet your long term credit goals. Visit our website and complete a contact request for or get into a Live Chat with a credit counselor standing by. You can be debt free, Freedom Debt Management can help.

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Certified credit counselors work with potential clients to assess their current financial situation and determine what their best option may be.