There are two types of credit cards out there, good credit cards and bad credit cards. Some persons get fascinated by false claims of banks and make a wrong choice. Most of us got trapped without being aware of the actual interest rates. There are many pros and cones we should look in before making our choice. Many credit cards have hidden charges. You should always discuss all details, upper limits and due dates of defrayal with your bank. Most of the times, the user does not realize these hidden costs and charges until your pocket feels the burden.

Such bad credit cards could cost you probably thousands of dollars of your hard earned money in the end. Mostly you get such shocks when you are least prepared for them. If you are using a reward credit card, these hidden cost monsters will eat up your all rewards at the end of year. Some users realize that they are being bitten by their credit cards but they find this fact very late.
The first trick they normally play with you is the grace period of these bad credit cards. The grace period is apparently looked like the extra time you have to pay your bill.

But actually it is a pitfall. You could easily be deceived by the grace period that you don’t have to pay any extra amount in this period. If you want to avoid all sorts of hidden fees or costs, its better to pay bills as soon as possible. This is the best way to avoid any complications and hidden double or some times triple interest rates. There is no point to linger on your bills once you get it.

The second trump card they use is the little late fee you have to pay after due date. Most users overlook this factor. It is quite common as almost all credit cards charge this late fee. Some persons take it as a relaxation and choose to pay these extra charges. If you add up these costs, you will realize your card is sneaking money very cleverly from your pocket. Always choose to be on safe side; always calculate these late charges as they add up in your total amount. Your interest rates will increase rapidly.

The best way to reduce your tension and avoid such credit cards is to work out all negative features of your card.

The second option is to pay your bills on time. My loyal suggestion to you is, always pay more than the minimum amount of your bill. If you are persistently paying your bills late, it will ruin your credit card report. Most of the times your bank and company double your interest rates.

If your credit card has hidden costs in grace period and its late fee increase speedily, try to pay your bills on time. My final words are, all that glitter is not gold. Your silver, golden or even platinum credit cards could pick your pockets.

Author Bio: Desiree Hutchison With the burgeoning online consumer market where and when to apply for credit cards is question more in need of answering than ever. Certainly, why to apply for credit cards is no longer a pertinent question.

Category: Finances
Keywords: credit cards,bank