Variable APR- The 21st Century Snake Oil Salesman
Article by Derek Smith
After tossing and turning one night I decided to flip through the local channels. Channel after channel was filled with these modern day snake oil salesman promising to get you rich quick or acquire houses for virtually no money. While these scams come and go one of the biggest tricksters are our modern financial institutions and their cash cow: Credit Cards with variable APR.I look at some great businesses structures that have stood the test of time that have the best interest of the customer in mind. These businesses rely on providing a solid product, great customer service and a "customer is always right" attitude. Any type of fraud or deception from these companies would be headline news that would put a damper on any future business. Who doesn't love eating at Chik-Fil-A, not only do you get good food, but every team member is smiling and waiting on you hand and foot. A business model built on customer service while specializing in chicken sandwiches.The one group that this doesn't apply to is credit card companies and their variable APR program. If you ever look below the huge beach scene picture or the ",000 pre-approved" in a credit card ad, you will notice the fine print in what seems like a 1 font size. While many times it takes a Mensa member to read this fine print, this is the only part of the ad that you need to read. This fine print is where these companies hide their dreaded variable APR.
Basically the card issuer can change your APR at any given time as long as they give you 15 days notice. No rhyme, no reason and no care or concern for the customer. An APR change from 12 to 20% can be a huge chunk of change and something that no customer wants to add to their bills. Could you imagine other parts of your life with a variable APR? "Sorry kids, no Disneyworld trip this year our house payment is now 00 this month instead of 50."
"Only 1 shower a week guys, our water bill just went up ."
The one thing that everyone should do is check all of the fine print before choosing a credit card. Check for purchase protection, life time warranty coverage and travel discounts. Remember these companies are in the business to make money and lots of it. The one customer that all credit card companies hate is the smart customer. So read the fine print and be ready to move cards if your hit with a high APR.
My name is Derek Smith and I am part of the "new breed" of entrepreneurs who manage multiple companies while outsourcing the hard parts of my life and business. Check out my Airmiles Credit Cards guide to get the most for your travel budget. Thank you and please visit my site at www.airmilescreditcardsguide.com