I want to continue discussing multiple rates. This is an area I see mistakes made. One time I had a client have a 0% credit card, but she had to make at one purchase for $75 a month to continue rate.
Now she did have a balance originally of around $12,000 and paid down balance to around $7000. The only bad thing she had a balance of $900 from purchases which had a rate of 12.99%. She didn't think that was all that bad since she was paying any interest on the $7000 balance.
It did seem that she was getting ahead, but the thought I had was how many people are not that disciplined to follow this cards rules. She may have been 1 out 1000 who actually was getting ahead with these terms.
Having to make a purchase to keep rate and terms is bad thing. Since you have two things working against you.
1. Having to charge at least $75 a month
2. Missing a payment then getting a higher default rate. I have not discussed default rates yet, but we'll get to that later.
This just seems to be a card waiting for trouble for the consumer. A real good money maker for card since they at least earn interest on new purchases.
LESSON: Always read the fine print on credit cards. Know the rules or lose
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