Trick or Treat! Find out which credit offers are tricks, and which ones are treats – Credit Sesame

Summary:

• Watch out for which we call “tricks”, such as a pay day loan, a lot of hard inquiries, and credit card fees.


• Take advantage of treats for example 0% APR, various rewards, and purchase protection.


• Make sure you pick the best charge card for your requirements.
  
  

Halloween is appropriate around the corner, so we thought we would share a few “tricks” to take into consideration when it comes to your credit, as well as what “treats” to add to your wallet.

Credit Tricks

Beware from the different “tricks” available that may hurt your credit rating and potentially put you deeper in debt. Below are three examples.

Payday Loans: Don't let someone trick you into obtaining a payday loan.  An online payday loan gives you immediate cash that you will often have to repay within two-four weeks. AND- you typically need to supply the lender with use of your money information. In the event that sounds alarming, it typically is. The lending company might take out the money from your account. If you can't pay back the money on time as well as your bank account doesn't have the amount of money your debt, you can find hit with high fees and rates of interest.

Too Many Hard Inquiries:  A hard inquiry happens when a lender or creditor examines your credit score to determine when they should approve the application for any mortgage or apartment rental, a new charge card, an auto loan, and more. A hard inquiry can negatively affect your credit rating, and remain on your credit report for two years. For example, four hard inquiries over three months could possibly decrease your credit score by 50 points. There is no way to avoid a tough inquiry if you're trying to get a home loan, etc. but just be familiar with how many applications you complete in a short period of time.

Unnecessary Charge card Fees: When applying for credit cards, be sure you understand what the Annual Percentage Rate (APR) is and what fines there are in the event you cannot pay the balance entirely every month. And, if you fail to spend the money for balance entirely, you should try to pay a lot more than the minimum. Otherwise, it might take years to repay and you'll be paying a lot more than what you had originally paid.      

Credit Treats

Halloween wouldn't be complete with no few treats! 

Introductory 0% APR:  Some credit card issuers offer an introductory offer of 0% APR (Annual Percentage Rate) for 15-18 months. This can be a sweet deal, especially if you are making a large purchase, for example a product or furniture piece. There is no interest throughout the offer. If you decide to make an application for one of these simple cards, pay it in full prior to the offer ends to avoid any interest.   

You can also make use of this card for any balance transfer. If you have an account balance on a card with a fairly high APR, you can transfer that balance to this card and save the cash that you would have paid in interest so long as that balance pays off before the offer expires.

Credit Card Rewards:  An especially nice treat may be the rewards offered via charge cards. You might be awarded cash back, points or miles. Some may also offer special VIP opportunities for example tickets to events in front of the public. The more you apply the card, the greater worthwhile the rewards will be.

Protecting Your Purchases:  When you purchase a product together with your credit card, odds are the charge card company offers purchase protection. If something breaks, or is stolen or lost, your charge card company might have it covered. And, you might not need to purchase additional warranty coverage consequently. However, make sure you look into the purchase protection coverage before making use of your card so you know exactly what it covers. These perks are sometimes even available with debit accounts such as Credit Sesame's Sesame Cash, which offers mobile device and purchase protection whenever you pay with your Sesame Cash debit card. 

Have a contented and safe Halloween!  And, be sure to check your credit rating monthly at Credit Sesame.