RICHMOND, VA (WWBT) – Advertisements offering big discounts and big sales could end up costing you in the end. Here are some deals that are too good to be true and you should steer clear of.
Free Credit Report
When you visit freecreditreport.com, you sign up for what it seems to advertise - a free credit report. But if you read the fine print, you do receive a free credit report, but if you don't cancel within seven days, you'll get a $14.95 monthly bill until you bail out. The website, annualcreditreport.com is sponsored by the government and really is free.
"That is sponsored by up to 3 credit reporting agencies for you to get a free one, once every 12 months," said Leslie Kish, VP of operations for Cincinnati Better Business Bureau. "A lot of other agencies might have a free credit report or things like that in it's name but there are costs associated with that."
Credit cards are another possible money trap. If yours is tied to airline miles or gift points, you might want to dump them. The benefits have shrunk and the annual fees might out way the perks.
"You got to be clear that benefits coming from the card is something you need if you don't guess what go with cash back cards because we all can figure out a way to use cash," said Simply Money expert Nathan Bachrach.
Extended warranty protection
If you buy a washer, you might want to think twice about adding on the additional coverage. Sometimes the repairs are covered by the standard warranty and that repair might not cost as much as the extended warranty does.
"The data says don't do it," said Bachrach. "But when it comes to complicated washers and dryers and cars you might want to think twice about it."
The bottom line is to watch for deals masquerading as bargains. Read the fine print and check into it. It may save you money in the end.