Initial Rate Period

You get the pop-up ad: a credit card with 0% interest rate for the first year. You sign up. You go on an epic spending spree, reaching the card's limit within a few days. You shrug. Free money. You keep up with the minimum payments, which don't make much of dent in the total amount you owe. But you're not paying interest, so who cares?

Suddenly, it's the end of the first year. Now rates are going to jump. What's more, the new 25.7% APR applies retroactively. Uh-oh.

Your problem? You didn't understand the details of the initial rate period when you had the introductory offer...the good old days when you thought you lived in a world with free money. You clearly need to read more of our glossary terms and get all cynical like we are.