credit card mistake

[Mr. Mister]

just wanted to fill you in on the worst credit card mistake Ive ever made. I was lured into a department store credit card deal that offered no interest for a fixed amount of time--and only on certain purchases. okay, no problem. sounded good. and like alot of people i tend to get by making minimum payments on my cards.

what i forgot to calculate was that if i were to make minimum payments every month on my purchase, i would be far from paying it off by the end of the promotion period, or the amount of time i was entitled to zero interest. as soon as the period ended, my interest kicked in at 23%.

big mistake to fall for this trick, and i reccomoned staying away from deals like this unless you can make much more than the minimum payment each month and have it paid off by the end of the zero-interest period. oh well, you live and you learn.

[mycreditgroup]

Mr.

I sort of view credit card companies like casinos. THe house almost always wins. We just wrote a blog about that a couple weeks ago. The most expensive no interest card

[BethanySilver]

Funny you should say that. I had the same problem with best buy (loved the blog by the way) and it caused me a heap of trouble. I knew i had to pay the balance off by the end of the zero interest period, but I too overlooked the fact that minimum payments wouldn't get it paid off in time. And yes, the interest rates are ridiculous so make sure you pay it off ASAP. The question I can't seem to find the answer to (Ive tried talking to half a dozen best buy reps but they all seem like kids who don't know much of anything about it, even in their credit department surprisingly) is: is there really such thing as retro-interest? The blog mentions it but I can't find a whole lot of solid info. But youre right--this card (or any like it) are a mistake. ANd like administrator said, credit card comapnies are like casinos, the house always does win.

[mycreditgroup]

Bethany is right. Most the clerks wont know anything about their credit cards.

Here's the deal with credit cards. The casino anaology is pretty accurate. You are set up to lose by some very smart people. The only way to win at the credit game is to maintain about 3 credit cards. Use them very sparingly. Gas once a month. A movie or dinner is fine. Just enough to keep them current, but not enough to make the interest painful.

Credit is a very powerful tool and I cant see living without it, but will turn on you the second you let it get away from you.