Trick or Treat: 7 Hauntingly Good Money Tips

7 money tricks and treats When it comes to money, you want treats -- not tricks.

Seemingly good financial ideas can turn out to be anything but. Conversely, other money ideas can have value, even if at first they seemed as appealing as raw broccoli in your Halloween bag.

Want to stock up on the financial treats while avoiding the tricks? A few experts share some tips for spotting the differences.

A home equity line of credit A home equity line of credit, or HELOC, can be a trick or a treat depending on your finances and the arrangement, says Jill Gianola, CFP and author of "The Young Couple's Guide to Growing Rich Together."

But a lot of homeowners focus only on the sweet side, she says.

The treat: "The interest rates are so low right now," Gianola says. "So it seems like a wonderful way to borrow money. They can dip in when they want and out when they want, and all they have to pay is the interest."

The tricks:

* Most HELOCs have variable rates. "When the interest rates go up, they can go up significantly." * Banks can cut or eliminate available credit at any time in response to decreasing home values or changed personal circumstances (such as job loss), Gianola says. * After 10 years, you have to start repaying what you borrowed. When you sell the home, the HELOC must be repaid immediately.

One alternative is to get a fixed-rate cash-out refinance. "A home equity line can be a very good thing," says Gianola. "Just be aware of the potential gotchas."

'Preapproved' credit card offers Chances are what you've really received isn't a preapproval notice, but an invitation to apply for a credit card, says John Ulzheimer, president of consumer education for SmartCredit.com.

The trick: "A lot of people think they are guaranteed credit," he says. Read it again, and you'll probably notice language advising you that you could be approved for a credit up of "up to" a certain amount, he says. Or it mentions a rate that could be "as low as" a specific (and attractive) annual percentage rate, or APR.

But too many times, consumers' eyes skim past any qualifiers, Ulzheimer says.

The potential treat: If your credit is good, you could get the card with the advertised terms, he says. But you could also get lesser terms or be denied entirely if you don't qualify.

Looking for a card? Here's how to give yourself a real treat:

* Pull your credit history to gauge your creditworthiness. * Shop for a card with the features and terms you want. * Understand that every time you apply for a card, your score can decrease slightly. Shop first and apply only once, if possible.

Like what you see on that mailer? Put that card on your shopping list.

The hard sell for something you weren't wanting The trick: You're minding your own business, and suddenly someone is trying to convince you that your day would be so much better if you'd just buy what they're selling.

Avoid those hard-sell offers or, chances are, you won't get a treat for your troubles, says Ric Edelman, author of "The Truth About Money."

Whether it's that store card that will save you 10 percent today, a free vacation for attending a time-share pitch or a nice lunch that comes with an investment opportunity for dessert, simply decline, says Edelman.

The treat: When you are being "offered an opportunity" to part with your money, "there's no treat," Edelman says. "If you didn't wake up this morning planning to buy it, then don't."

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