Credit card awareness required

It may sound obvious, but credit card customers are being reminded of the importance of reading the small print of their borrowing contract.

Money-AU.com points out that tucked away in the terms and conditions of a report is vital credit card information such as how long introductory interest rate offers last, limitations on special offers and balance transfer charges.

Checking fine print could be particularly advisable as the publication claims that the single most common mistake those obtaining a low-rate or 0% balance transfer credit card deal can make is to assume that an introductory interest rate will always be on offer.

"A lot of borrowers are simply unaware when the teaser rate is no longer valid and assume that when they get beyond the offer the interest rate will be reasonable or no different to other cards," it claims.

Earlier this week, the publication advised those seeking out a balance transfer deal that they should not expect to be able to pay off their most costly debts first, as the vast majority of lenders impose a negative payment hierarchy programme.

Written by Ashley King.