Consumer Credit Card Services - Designed To Suck You In?

“Get what you want now and then take your time to pay”, is the message that consumer credit card services send to millions of Americans every day. However, “get what you want today and take years and years to pay” would probably be a more accurate description. Credit card companies use all sorts of tactics that are designed to draw you in and use their credit cards. While there are a few credit card banks that do offer a reasonably honest and straightforward service, there are still many credit card companies that simply make outlandish claims to get you to open accounts. Therefore, here is a list of some of the most common tactics used by credit card companies to get you to make purchases with their credit cards.

Low Introductory Rates

This is one of the most common techniques used by credit card companies - the low introductory rate. Many credit card companies offer ridiculously low introductory rates to get you to apply for a card and then charge large amounts with it. However, these low introductory rates usually don't last very long, and when they end - your minimum payment goes through the roof. It is not uncommon for these low introductory rates to be raised to as high as 18 or 19%. Therefore, if you want to use a card that offers a low introductory rate, you should try to pay the balance off - before the big rate increase kicks in.

Cash Back and Rewards Programs

Many credit card companies offer cash back and rewards programs for using their credit cards. Many companies typically offer rewards that amount to between 1% and 5% of your total credit card purchases. Many people are lulled into thinking that the more they spend on the credit card; the more they will earn in cash back or prize rewards.

However, most people fail to realize that even a 5% reward is quickly eaten up by a 15 or 20% interest rate. Therefore, only use these cards when you really need to and always tried to pay off the balances as quickly as you can. By doing this you can still reap the benefits of the rewards, without paying hundreds or thousands of dollars in interest rate charges.

Gold Credit Cards

The concept of the gold credit card was created to make you feel that you're special. However, most Gold credit cards don't really offer anything much different than white, blue, red, black or any other color of credit card. Gold is simply a pretty color that makes you feel like you've earned something that you actually have not.

Years ago Gold credit cards actually held some significance as to the credit rating or wealth of the cardholder; however, that has not been the case for many years now. Therefore, you should see the offer for the gold card for what it really is: an attempt to loan you money at a high interest rate.

Other Tricks and Schemes

While the above are the most common and most productive schemes for the credit card companies, there are many others. You should also be wary of credit cards that offer 0% balance transfers, offers to help you pay down your mortgage and chances to win a lottery. All of these offers are designed to put you in debt to the credit card company. Once you're in debt, it can be difficult to escape and will allow the credit card company to earn interest off your balance for many years to come.