Over-Your-Limit-Fees

Historically when you reached your available credit limit any further purchases were declined. Now the company will approve the purchase and then hit you with a hefty over-the-limit fee, as much as $50.00.

But that's not all. Unless you pay the over-the-limit fee and bring your balance back under the limit, you'll continue to get hit with that fee every month. It can add to your balance quickly because you'll have to pay interest as well.

Check your balances every month. If one of your cards is getting too close to the limit, leave it at home or make an extra payment.

Temporary Low Rates

As an enticement to get new card holders, companies offer a ridiculously low interest rate. But check the fine print, that low rate may only be good for six months, sometimes less. You may find that after you've switched your balances from your old card to the new so called low interest card that you're paying more interest than ever when the low rate expires.

Switch in Rates After You've Signed Up

Credit card companies can change the rates to anything they want anytime they want. Just because they promised you a rate of 0% doesn't mean you'll get it. And it's all perfectly legal. When you sign the application you are agreeing to a change in terms with only 15 days notice. You may think you're getting 0% but when the card arrives and you use it, or switch your balance over, you find out you didn't "qualify" for the lowest rate. The new interest rate may higher than your old one.

States do have usury laws which put a cap on the amount of interest that can be charged. But credit card companies have found a way around that. Two states, South Dakota and Delaware, have no limits on interest and guess where most card companies operate from?

Read the credit card application carefully so you won't be surprised when your first bill arrives.

You can reduce your credit card debt.

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