6. Being misled by introductory rates.
Low- or no-interest introductory annual percentage rates (APR) are common and valid incentives to apply for credit cards. These last at least six months, and often a year or more, with APRs increasing after the introductory period is over. By all means, it’s smart to take advantage of them if a higher APR card is costing you, but these teaser rates are often misunderstood—or forgotten about. If you don’t pay off your debt before the introductory period expires, interest charges will be charged retroactively—and usually at a higher rate.