Beware of these credit card traps

Credit cards can be a great tool for managing finances. But users must be aware of these traps:

1. The unsolicited cash advance. A low rate offered on a cash advance can rise steeply if not repaid.

2. The offer to increase the limit on an existing card. New laws mean you have to opt-in to these receive these offers which are becoming enormous and dangerous.

3. An instant credit limit of $21,000 on a new card.

Source: The Age

Advertisement