How to Avoid Credit Card Traps

“Credit cards are a powerful financial tool, but there are traps you need to watch out for. Here are the most common ones, and how to avoid them.”
“First, be cautious of credit card offers with high annual fees. These fees can eat up any rewards you earn and significantly reduce the value of the card. Always check the fee structure before signing up.”
“Next, watch out for 0% APR introductory offers. These can seem tempting, but if you don’t pay off your balance before the offer expires, you could be hit with hefty interest charges. Make sure you’re clear about when the 0% APR ends.”
“Finally, missed payments can trigger penalty APRs—interest rates that can soar above 25%. Keep your due dates in check to avoid falling into this trap.”
“By staying aware of these common traps, you’ll be able to use your credit cards strategically and avoid unnecessary costs.”