• THE GODFATHER: Be Wary of Favors

“I’ll make him and offer he can’t refuse.”

A common idea is that if something is too good to be true, it probably is. If the Godfather made you an offer you couldn’t refuse, it may not have been the best deal. “Unless you have a gun to your head, think twice before signing up for a rewards credit card.” The offer may seem too good to be true, and often is. “Real Estate lender Todd Huettner, president of Huettner Capital, says, ‘Card promotions can lower credit score more than other cards.’” Further, Solomon Algazi of Credit Servicez says that, “Every new card requires a credit inquiry and disturbs the average age of your file, both of which ding your score.”

So, be wary of all the enticing rewards and rates that credit cards can offer. Huettner says that, “Most interest-free periods are costly, with rates of over 20% if the balance isn’t paid in full by the end of the promotion. They offer these discounts to make money on finance charges.”

Huettner further advises to, “Only use the promotional card that saves you money if you have money to pay of the purchase immediately.” However, if you miss the payoff date, it may cost you an arm and a leg, hopefully not literally.