I saw an advertisement to sign up for a credit card, and I would instantly be given a $30.00 back from the card company. It also had rewards program, which was similar to a lot of the other cards out there.
Would it be okay just to sign up for the card to get the $30.00 back? I hope you all know the answer to this one. If not I will go over the fine print with you.
You start with an APR of 16.74, and depending on your credit, this rate can start out as high as 22.74. They also may raise your APR up to 31.74 at a default rate. The reasons they give are:
We do not receive, for any payment that is owed on this Account or any other account or loan with us, at least the minimum payment due by the date and time due; you exceed your credit line on this Account, if applicable; or you make a payment to us that is not honored by your bank. Your APRs may increase as of the first day of the billing cycle in which the default occurs.
If you notice that last sentence is, “may increase as of the first day of the billing cycle in which the default occurs.�
Just quickly on the late payments: $15.00 on balances up to, but not including, $100.00; $29.00 on balances of $100.00 up to, but not including, $250.00; and $39.00 on balances of $250.00 and over.
If I made any late payments, or made any mistake in my finances, the $30.00 back I would have received would probably go towards any of the above researched information. Plus any additional fees and charges I would have.
Thank you for your help! We all know how important a credit check is for lower loans.