Deceptive Credit Card Offers

If a credit offer sounds too good to be true, it probably is. You’ve probably gotten offers in the mail telling you you’ve been pre-approved for a credit card, or that you can open a credit card and pay no interest for 6 months to a year. The thing is, some credit offers aren’t as good as they look on paper.

Corey Blake from New Horizons Credit Union says one thing you need to watch out for is a 0% introductory rate offer. He says often times, the 0% APR introductory offer is accompanied by “Our Best Rate Ever”, and if you read the fine print, you will find that 0% can turn into 29.99% quicker than you realize just by missing one payment. He says the same is true of "low" APR offers.

If you receive a notice in the mail saying you've been "pre-approved" for a credit card, it means you've been pre-approved to "apply" for a credit card. That just typically means your credit score falls within the range the marketing effort is targeting.

When you go online to pay your credit card bill, you may be prompted to increase your credit line. Bake says if you have responsible credit behaviors, your credit card should experience this anyway.

If you report you card missing or stolen before it’s used by a thief, you already have 0% fraud liability. You’re protected under Federal law, and you're liable for up to $50 if your card is used before you report it stolen.

You can help build your credit by paying your balances or minimum monthly payments on time. Also watch for the “Act Now, You’ve Earned It” offers. But you may not have to "act now". The offer may have an expiration date, but it’s not going to disappear. Do your research and make sure you are getting the best credit card deal out there.

For more information, please visit  www.newhcu.org .