Tricky words & phrases:

"Introductory" Annual Percentage Rate

Even the best credit card companies use tricky words and phrasess, so check out the fine print before believing the headlines!

APRs by itself can be confusing enough, but look again at the whole tricky phrase: Introductory APR.

The word "introductory" is the sucker punch!

Here's the definition of "Introductory:" Very short term...

Credit cards use "introductory" rates to entice you.

Introductory rates are an advertising gimmick.

"Hey, look how cheap we are!"

That's what they want you to think.

But here's the important question: What does the rate go up to after the "introductory" rate?

Sometimes the rate goes up a lot! For instance, your rate starts at 0%. It could go up to 24%!

Next question: How long do you get the low rate?

Many companies use the phrase "up to" when telling you how many months you get the low rate.

You know, "We offer zero percent for up to 12 months!"

But the company usually won't tell you how many months you get the low rate until after you've gotten their card!

You get a card, expecting zero percent for a year. They give you zero percent for one month.

Sucker punch!

Question: Which credit card would you choose?

• One company tells you they will give you a low rate for "up to twelve months" but won't tell you how many months you'll actually get the low rate until you have already gotten their credit card.
• One company tells you they will give you a low rate for "up to twelve months," and tell you before you get the card how many months you'll actually get the low rate.
  
  Answer: Find a card company that tells you in advance what your rate will be.

No Brainer: Don't get a credit card from any company that won't tell you your normal rate before you get their card.

This is a little different than "introductory" rates. Some companies won't even tell you your regular interest rate until you get their card!

• Their ad may say rates "as low as 5%!"
• You get your card, and your rate is 28%!

Sucker punch!

What idiot would get a credit card from a company like that?!