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Home 2018 January 24 25 Credit Card Mistakes You’re Probably Making

25 Credit Card Mistakes You’re Probably Making

Mistake No. 11: Not checking to see if your card features a “penalty APR”

Many people are unknowingly walking around with a kind of time bomb in their wallet, in the form of a “penalty APR” term on their credit card. A penalty APR is what you get when the card company jacks your interest rate up to 25% or even 30% if you pay a bill late or commit some other transgression.

Many cards don’t feature them, and that’s vastly preferable. If you sign up for a 0% introductory APR credit card with a penalty APR, you might even lose that valuable low rate due to a late payment and endup worse off than when you started. If you’re shopping for a new credit card, it’s best to check the fine print and make sure there’s no penalty APR. Check the terms of the card(s) you already have and use, too.

Jan 24, 2018cleverfinance
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