Credit Card 'Perks' That Aren't So Great

Credit card companies love to tout the perks that come with their cards to get you to open one with their company. But these perks are often just a sales gimmick and not something you should be basing your decision on.

Miles and points come with most credit cards - but some of the other things they advertise will only end up costing you way more money down the line. Don’t get drawn in! Even if you have these things available to you, don't be tempted to use them.

Convenience Checks

Some credit card companies will send you checks that connect to your account. This is similar to checks that you get that connect to your checking account. You can use these checks to pay bills or cash in. 

While it seems like a good idea it can be very costly, often with an APR of 30 percent or more with an additional transaction fee! The convenience of these options are outweighed by how costly they can be and many people end up using them just to get cash which can be a very bad financial habit to get into.

Cash Advances

Many creditors advertise cash advances as one of its perks. This “perk” allows you to go to the ATM and withdraw cash from the credit card. 

While it may seem like a smart idea when you need physical cash it can seriously cost you in the long run. These cash transactions almost always come with a hefty interest rate and/or fee. You could withdraw $20 and be charged $10 in fees! Not to mention that letting this feature become a habit will rack up credit card debt and interest that will grow quickly.

Balance Transfers

Balance transfers are not always a bad thing if you understand the fine print and pay it off. But if you see that advertisement for a free balance transfer and think it won’t cost you a dime you could be very wrong. 

Balance transfers are a good way to consolidate debt onto one credit card but these kinds of transactions can carry a fee and the free ones are often only honored for a short period of time. Transferring without reading the fine print is a good way to get yourself into trouble when a high interest rate is suddenly applied to your newly transferred debt after the promotional period ends.

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