3 Credit Card 'Perks' To Avoid


When you open a new credit card it’s easy to be overwhelmed by all the bells and whistles that come along with it. While some perks are great, others aren’t quite perks at all.

Miles and points are great perks that come along with most credit cards - but some of the other things they advertise will only end up costing you more money. Here are three perks that you should almost always avoid…

Cash Advances

Many credit cards advertise ATM cash advances as one of its many perks. This feature allows you to go to the ATM and withdraw cash from the credit card itself. While it may seem like a smart idea when you need paper money in a pinch 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.

Convenience Checks

Similar to the ATM cash withdraw feature some credit card companies will also send you checks that tie into your account. You can use these checks to pay bills or cash in. While it seems like a good idea, like the cash withdraw option, 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.

Balance Transfers

Balance transfers are not always a bad thing if you understand the fine print and are diligent to 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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