Some product manufacturers, such as Apple Computer, have credit plans that push a whopping 23 percent. Most credit card companies attract customers with super low interest rates, sometimes as easy as 5 percent. But what they only tell you in the fine print, which few people bother to read, it that the interest rate jumps back up after six months. Many cards that start you out at 6 percent soon jump to 18 percent, or higher. By that time, most people have chalked up a balance and are stuck.
Most people simply fail to notice when their rate increases.
Credit card companies count on that. They like who take no interest in details. Some credit card companies charge no annual fee for use of their card. You pay it every year simply for the privilege of using the card. Other companies charge no annual fee.