Free Credit Cards-Are They Safe?
Have you received any invitations in the mail lately to apply for a credit
card? Many of these invitations may boast that you can get the credit card ‘for
free’, but what exactly does that mean? Before you give in to the temptation to
apply for another credit card, you should make sure that this free credit card
is really a good deal. Here are a few ways to tell.
“Free” Credit Cards Aren’t Really Free
In most cases, when a credit card company claims that their card is free, it
means that you won’t have to pay the application fee that usually comes along
with applying and being approved for a credit card. This may save you money in
the long run, but you may end up paying higher interest rates or overall
monthly payments because of the waived application fee. So, be sure to read all
the fine print that will come in the mail with the announcement that you could
be approved for a free credit card. If you see an invitation for a free credit
card online (sometimes they are sent directly to your email account), be sure
to call the credit card company, or send an email with any questions you may
have. Until you know exactly how much you can expect to spend per month, it’s
best not to commit to the credit card.
Free Credit Card Under Certain Conditions
Sometimes, the only way you can take advantage of a free credit card is to
agree to a number of terms and conditions outlined by the credit card company.
For instance, you may be required to make payments on time with no exceptions
for a number of months, or the free credit card option may only be available if
you’re applying for a second card. If you’re using the card for a balance
transfer, be sure that you can afford the interest rate as well as the base
payment per month. If you have questions about the terms of your credit card,
or believe that the terms of your card have changed, be sure to contact your
credit card company as soon as possible.