ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Low Rate Credit Cards: Just a Mirage in The Desert

Updated on January 24, 2020
Nicoartz profile image

I have done a lot of SEO content writing for websites; thus, I have done a ton of research about loans, credit cards, and consolidation.


Low Rate Credit Cards: Just a Mirage in The Desert

Most people love a good deal and for them, hunting for low rate credit cards can be an experience in itself. They will search the Internet and even ask friends and colleagues on the best offers. They’ll even search their mail every few days just to check if any offer has arrived. Are you one of them? Maybe you relaxed a bit – just because these cards have a low rate doesn’t mean they won’t fleece you.

Why is it a mirage?

Ever been to any desert? If you’ve been in the sun too long and traveling the sand dunes for a long time, chances are you’ll start seeing these images of water in the distance. However, when you approach these, you’ll find there was no water in it after all! These illusions are called ‘mirages’. All false hope and no substance – to sum it up, low rate credit cards are all this and more. One thing to keep in mind is that all credit card companies are here to make money. Therefore, why would they offer you a low interest unless they had something going for them, right?

How do they recover the money?

Ever wondered how credit companies recover their money when they offer you these fancy, low rates? The answer is simple – by hiding the facts from you of course! Many companies have been known to swindle millions from their so-called ‘great offers’. One company I know offered customers the prospect of a very low balance transfer rate. They would ask customers to transfer all their balances to the new card, for a nominal upfront fee. Unsuspecting customers would pay up only to realize later that the balance transfer rate was much higher than even average! No customer in their right mind would ever transfer balances to a higher rate card, right? That’s why this company would hide the actual rate. The worst part was that the company packed its bags after swindling all their customers’ money. There was no trace of them later!

This was, of course, an extreme case. However, credit card companies always seem to be hiding the real facts while offering a ‘good deal’. Therefore, for every 0% balance transfer rate, there’s also an expiry date attached – usually 6 to 12 months. There’ll also be conditions that state if you default on the payment, the rates go back to default. If you pay less than the minimum even in one month, the rates go back to default. The same goes for the Annual Purchase Rate and so many other promotional schemes offered.

What Happened to The 0.0 Transfers?

There was a time when credit card companies would charge a 0% balance transfer rate and no fee as well. Soon they realized customers were capitalizing on this scheme and they were suffering losses. Very soon, the balance transfer fee was hiked to 2 to even 3% of the transaction. Now there are just a handful of these credit card companies that continue to offer a zero balance transfer fee.

What's The Bottom Line?

I guess the bottom line is that the moment a credit card company realizes it’s about to incur losses, it will seek ways to more than recover the cost. So the logical choice for the creditor is to sick the charges to the customers. They’re not here for charity – they’re in business. Just like any business, they need to show profits. Unfortunately, that means more money out of your pocket. It doesn't seem very fair, does it?

What should you do about it?

Nothing! There’s not much you can do about it really, except being cautious yourself. Read the fine print carefully, clarify any doubts you have. The trouble starts when you start assuming and don’t ask. If you ask, the credit card company will have to answer your doubts and be honest. Make sure you understand all the terms and conditions stated in the product literature. If you don’t understand something, pick up the phone and ask the company. Knowledge truly is power. So be sure to do the research and take notes! This will ensure you never get fooled by low rate credit cards.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2020 Jason Nicolosi


    0 of 8192 characters used
    Post Comment
    • Nicoartz profile imageAUTHOR

      Jason Nicolosi 

      2 months ago from AZ

      Thank you so much for the comment Manatita. I really appreciate it. I'm very happy you liked the article.

    • manatita44 profile image


      2 months ago from london

      An invaluable piece of information. I think I have been down that road before. You have inadvertently touched on the source of many sufferings: Greed. Thanks Bro.

    • Nicoartz profile imageAUTHOR

      Jason Nicolosi 

      2 months ago from AZ

      Thanks for the comment, Eric. I certainly appreciate it.

      Credit card debt can definitely cause waves in a marriage. Often time the stress related to high card debt can cause marital issues.

    • Nicoartz profile imageAUTHOR

      Jason Nicolosi 

      2 months ago from AZ

      Thank you, Lorna. I'm happy to hear that you found the article informative. I appreciate all the positive feedback.

      I hope that people read the article and use the information to their advantage.

    • Ericdierker profile image

      Eric Dierker 

      2 months ago from Spring Valley, CA. U.S.A.

      I always kind of wonered about this, even though I am not the familly accountant. Now I better understand what she is talking about. Thank you. These kinds of issues can take marital bliss down a notch or two through ignorance. So thank you again.

    • Lorna Lamon profile image

      Lorna Lamon 

      2 months ago

      Another helpful and informative article Jason and unfortunately human nature is such that many of us fall for deals like this without reading the find print. Usually if it is 'too good to be true' then it most definitely is 'too good to be true'. Great advice.

    • Nicoartz profile imageAUTHOR

      Jason Nicolosi 

      2 months ago from AZ

      Thank you so much for the positive comment on the article JC. I am glad that you found it to be informative. I hope that the article helps people make good decisions when obtaining credit cards.

      It's important to obtain as much information as possible about your credit card terms. Knowing all the fine print of any contract is extremely important. Especially when dealing with finances.

    • JC Scull profile image

      JC Scull 

      2 months ago from Gainesville, Florida

      Good informative article Jason. Thank you.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)