Undoubtedly, everybody is enticed with zero introductory rates and beneficial balance transfers. Their prevalence can be explained easily - they provide credit card companies with big profits. Why? One can learn a sad credit lesson only having experienced all the problems himself/herself. Most people do acknowledge the fact that nothing (!) is free in this world but still (which is, I presume, is a human nature) they so often sincerely believe in all the incredible credit cards that promise unique terms and conditions. Way too often balance transfer cardholders misuse the introductory rates. Why does it happen? Customers are unaware of some essential details.

Lack of information is the source of problem. The most frustrating thing about all credit troubles is that we admit our fault and, moreover, can't do anything about it. Analysts say that cardholders misuse balance transfer cards and it often happens because of those tricky low intro rates. To give you exact facts: some 15, 000 credit users make lots of purchases as soon as they get a new plastic.

In case you are an experienced cardholder, you must know that making purchases with your balance transfer card may lead to some unpleasant problems. In other words you might fall into a common credit cards trap. May it sound absurd but you will hold a low rate balance and eventually face very high interest rates on purchases.

The survey shows that more than half of such "problem" customers do not realize this at all and keep making more and more purchases. Believe it or not but the truth is hidden in your credit card agreement, the one that you must have not read thoroughly but just skipped. Why are so many people so unwilling to read this tiny printing?

One more pitfall of a 0% rates credit card deals is the rates (but after the introductory period!). This very 0% percent can increase up to 16%! Do you feel you have made a good credit deal now? This is the credit card companies do business. You are more than awaited to make false steps because it will bring money for the company, not you. Still, more and more customers are tempted my 0% balance transfer cards and 0% on purchases cards.

Such lowest APR cards are intended for the people that can hardly make their ends meet. They are more likely to cherish the naive hopes to solve all the problems with the next plastic but the next one lead to even more difficulties.

The same way you may become a victim of another credit trick - the order of your payments. You pay off the balance amount first and your higher interest charges are (so to say) laid up in lavender. Let's imagine that you transfer $ 5,000 and suddenly you make up your mind to charge $10 for a nice blouse that is on sale. Think, your payments will go first towards that $ 5,000. That is exactly how credit card companies make money!

What needs to be mentioned is that all the credit tricks that were described in the article are completely legal, although they seem unfair to the customers. Here is a smart advice for you: learn to be vigilant when it comes to credit card features, terms, and conditions. Keep in mind that most things are just advertising dodges. Be sure that you know exhaustive information about the card that you are planning to get.