CBC Marketplace is repeating its recent program on credit cards called Card Tricks on Saturday (3:00 p.m. ET. Check local listings). The show provides an in-depth analysis of the various gotchas buried deep inside the fine print. Among the tricks:
  1. Partial Payment: Some cards require that the entire amount be paid in full. Otherwise, interest is charged on the full amount, not just the amount outstanding.
  2. Currency Conversion Fee: Currency conversion fee charged for foreign purchases.
  3. Interest Rate Increases: Credit card issuers can and do increase rates at their discretion.
  4. Payment Due Date: Companies take 3-5 business days to process payments. A late fee is charged if the payment was processed later than the due date.

Credit cards provide valuable benefits: a free loan for 20-40 days, purchase protection, air miles or rewards or points or cash-back, extended warranty, auto rental collision insurance etc. Consumers can enjoy these benefits and not pay a cent if they follow strict rules:

  1. Never carry a balance on the credit card. There are far cheaper ways of borrowing money (like a line of credit at a local bank).
  2. Never borrow from the credit cards. Shred the “convenience checks” that regularly appear in the mail. Avoid using the credit card at ATM machines.
  3. Avoid having to pay fees of any kind: late fees, fees for exceeding the credit limit, annual fees etc.