Credit card companies are in business to make a profit.  In doing so they rarely use tactical moves that benefit the consumer instead they use savvy as well as misleading marketing techniques to entice consumers into thinking they are getting a good deal. The Federal Reserve Board which oversees and regulates the credit card industry has recognized these tactics and implemented new rules which should provide consumers with more protection.  While this is good news for consumers we will have to wait until 2010 for the new regulation to take effect.  In the meantime consumers remain on their own.  You can protect yourself by knowing what to look for, the list that follows outlines common credit card tactics that trap consumers. 

Annual Percentage Rates
Wading through the fine print to understand your annual percentage rate (APR) is often so daunting a task that consumers simply avoid taking the time to carefully read the terms and conditions.  Credit card companies know this and often us the promise of 0% interest or “as low as” offers to lure people into believing this is the ARP they are guaranteed.  In reality the days of 0% interest are over compared to a few years ago.  If you take the time to read the fine print you may discover that low interest rates are only applicable if you qualify (determined by your credit history) and are often for a limited time and only on certain balances, such as balance transfers versus purchases.

Minimum Payments
Credit cards pose a significant threat to the health of your finances if you fall for the minimum payment trap.  Many people worry only about how much their payment is each month and rack up balances they truly cannot afford living well beyond their means while thinking they can afford these purchases.  In reality your minimum payment is barely enough to cover your interest charges and you will soon find yourself with a maxed out credit card and a balance that seems impossible to pay off.

Miscellaneous Fees
Before applying for a card online or responding to an offer in the mail, you must read through the information carefully to ensure you are aware of all the miscellaneous fees you may incur by using the card.  Be on the lookout for annual fees, late fees, cash advance fees and even inactivity fees. 

In conclusion applying for and using credit cards can be similar to playing Russian roulette with your finances.  Regardless of the APR you think you are getting, you have to be prepared for the possibility that the credit card company can change your APR at any time through no fault of your own.  The only way you are truly protected is if you use your credit wisely and pay off your balance in full each month making interest rates a mute point in most cases.  You will still have to be diligent about miscellaneous charges and paying your bill on time to avoid late fees.  The best way to protect yourself is by being aware of the pitfalls and avoiding these common credit card traps.