If you opened a retail credit card with a deferred-interest plan to save on your holiday shopping, be sure to pay down your balance well before the no-interest term expires. Otherwise, you’ll start 2019 in a world of hurt.
Retail credit cards that entice shoppers with these promotions often bury the catch in fine print: If any amount remains after the deferred-interest period expires—which can be in as little as six months—or you are more than 60 days late in making a minimum payment before the period ends, you can be charged interest retroactively on the purchase price. On top of that, the average rate on retail cards is almost five percentage points higher than average overall credit card rates, reports CreditCards.com.
If you overspent on your regular credit card and are racking up interest charges, one strategy is to transfer your balance to a new card that charges no interest on transfers for a set period of time. For the next holiday season, consider using a general-purpose rewards card rather than a retail card.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
What's Next for MicroStrategy Stock as Bitcoin Nears $100K?MicroStrategy stock is up more than fivefold in 2024 thanks to a furious rally in bitcoin. Here's what you need to know.
-
BJ's Wholesale Pops on Membership Fee Hike, Stock BuybacksBJ's stock is rallying Thursday after the warehouse club raised its membership fee for the first time in seven years and unveiled a big stock buyback program. Here's what you need to know.
-
Roth IRA Contribution Limits for 2024 and 2025Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How to Figure Out How Much Life Insurance You Needinsurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life insurance needs.
-
Amazon Big Deal Days Is Coming! We’ve Got All the DetailsAmazon Prime To kick off the holiday season with a bang, Amazon Big Deal Days runs Tuesday, October 8 and Wednesday, October 9.
-
How to Shop for Life Insurance in 3 Easy Stepsinsurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
-
Five Ways to Shop for a Low Mortgage RateBecoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.
-
Retirees, It's Not Too Late to Buy Life Insurancelife insurance Improvements in underwriting have made it easier to qualify for life insurance, which can be a useful estate-planning tool.
