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Low interest credit cards are great until the time period expires. Most of these offers advertise something like this pay only 1% interest for the next 9 months. Sounds good doesn't it. Especially, since other cards are charging 19%. They encourage to transfer your higher interest rate credit card balances to the new card.

But, good offers always come with catches. While you are enjoying the 1% rate, you are charging more then you probably would at the higher interest rate. You may have added initial debt with transfer payments. When the offer expires you are back at the prime interest rate which has had 9 months to increase. Now all of the debt that you have been carrying is being charged the 19% or more current interest.

Surprise! (not). You do have some options. Before the offer period expires you can look for a new offer and play the game over again. However, be cautious here, each time you get a new credit card even when you transfer your balance it has a negative impact on your credit rating and your credit score.

A better option involves some pre-planning. You should try to have the balance of the low-interest rate card paid off or at least paid down before the term of the offer expires. This way you avoid the trap.

Beware of deals that look to good to be true; they usually are.

Learn more about this author, Cynthia Harlan.
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