e exorbitant charges if the user does not spend a minimum specified amount on the new card. Such a mandatory amount may be as high as $1,000. In other words, the credit card user mustIn addition to giving the facility of limited-time low or zero interest on credit cards, banks also offer a variety of add-on attractions in a bid to get more of the market. The idea is to have customers switch their balances from other banks to theirs, thereby allowing them to take over their banking ‘portfolio’. Apart from the low/zero APR feature, the ones that have proved to have the most pulling power in this regard are the no-annual-fees feature and low interest/interest free balance switchover.

With regard to the latter feature, the offer to transfer a balance at little or no interest often proves to have a major hidden catch. To illustrate, a bank that offers balance transfers at something like 5% may levy quite exorbitant charges if the user does not spend a minimum specified amount on the new card. Such a mandatory amount may be as high as $1,000. In other words, the credit card user must

is to have customers switch their balances from other banks to theirs, thereby allowing them to take over their banking ‘portfolio’. Apart from the low/zero APR feature, the ones that have proved to have the most pulling power in this regard are the no-annual-fees feature and low interest/interest free balance switchover.

With regard to the latter feature, the offer to transfer a balance at little or no interest often proves to have a major hidden catch. To illustrate, a bank that offers balance transfers at something like 5% may levy quite exorbitant charges if the user does not spend a minimum specified amount on the new card. Such a mandatory amount may be as high as $1,000. In other words, the credit card user must

have proved to have the most pulling power in this regard are the no-annual-fees feature and low interest/interest free balance switchover.

With regard to the latter feature, the offer to transfer a balance at little or no interest often proves to have a major hidden catch. To illustrate, a bank that offers balance transfers at something like 5% may levy quite exorbitant charges if the user does not spend a minimum specified amount on the new card. Such a mandatory amount may be as high as $1,000. In other words, the credit card user must

e offer to transfer a balance at little or no interest often proves to have a major hidden catch. To illustrate, a bank that offers balance transfers at something like 5% may levy quite exorbitant charges if the user does not spend a minimum specified amount on the new card. Such a mandatory amount may be as high as $1,000. In other words, the credit card user muste exorbitant charges if the user does not spend a minimum specified amount on the new card. Such a mandatory amount may be as high as $1,000. In other words, the credit card user must first decide whether such an amount is likely to be spent before deciding whether the ‘offer’ is feasible and beneficial or not.

Another add-on feature that attracts customers these days is the cash-back feature, which gives the customer a certain ‘kickback’ on money spent via the credit card. These offers are usually in connection with specific product brands or providers, such as fuel, grocery outlets, chain stores etc. Again, it must be understood that the primary aim here is to generate more revenue for these products and services and are based on arrangements with the bank for this purpose. The ‘kickback’ is, in most cases, quite insignificant – often as little as .25% of the purchase value.

Whether the offe