New Credit Card Pitches: Be Wary

[lilgee]

Several credit card companies are now offering credit cards
with a new twist: no $39 late fees if you make late payments.

This may sound interesting -- after all, who wants to waste
money on late fees? However, the catch is that late payments
can trigger an increase in your interest rate. For example,
American Express' Clear card will currently increase the
interest rate to 28.74% if the cardholder makes two late
payments in a year.

Further, late payments may well still lead to a negative credit
report, and these reports often cause other lenders to boost
interest rates on other outstanding loans.

Action: Pay your credit cards on time (or early). If you must
make a late payment, call to let your lender know in advance
and explain the reason why.

This is a scam so watch out for this.

 

[deu12000]

I actually got an offer like that a couple of days ago. After going through the fine print, I realized that a late payment would force me to pay an extremely high rate, after that I just ripped up the offer. Sometimes you honestly forget to make a credit card payment, it hasn't happened to me in a while, but it has happened. That penalty is just to high.

 

[lilgee]

yea, i seen alot of people getting em and there scams.