Beware of APR Fees on Credit Cards

After tossing and turning one night I decided to flip through the local channels. The television was full of commercials that offered for cash riches, free money and ways out of debt. While these scams come and go one of the biggest tricksters are our modern financial institutions and their cash cow: Credit Cards with variable APR.

I look at some great businesses structures that have stood the test of time that have the best interest of the customer in mind. These businesses rely on providing a solid product, great customer service and a “customer is always right” attitude. Any type of fraud or deception from these companies would be headline news that would put a damper on any future business. Any type of fine print, fraud or deception and the customer would have many more options.

The one group that this doesn’t apply to is credit card companies and their variable APR program. If you ever look below the huge beach scene picture or the “$10,000 pre-approved” in a credit card ad, you will notice the fine print in what seems like a 1 font size. While many times it takes a Mensa member to read this fine print, this is the only part of the ad that you need to read. This fine print is where these companies hide their dreaded variable APR.

Basically the card issuer can change your APR at any given time as long as they give you 15 days notice. No rhyme, no reason and no care or concern for the customer. An APR change from 12 to 20% are a huge chunk of change and something that no customer wants to add to their bills. Could you imagine other parts of your life with a variable APR?

A variable interest rate in other parts of life could lead to major money issues. A monthly increase in your utility bill, car payment and mortgage could put you behind and unable to catch up with payments. This is why this trick employed by banks is hard to fathom.

The one thing that everyone should do is check fine print before choosing a credit card. Check for protection, lifetime warranty coverage and travel discounts. Remember these companies are in the business to make money and lots of it. The one customer that all credit card companies hate is the smart customer. So read the fine print and be ready to move cards if your hit with a high APR.