Credit Card Offers - The Top 3 Benefits To Spot
Hardly a day will go by without you getting an offer to apply
for a credit card, either by the traditional mail service or
online. If this is something you are considering doing, there
are several key issues that you need to understand before you
decide which credit card offer is right for you.
All credit card offers will offer benefits. Finding the one that
fits your needs is the key!
Let's discuss a few of the things you should be aware of before
you apply for any credit card offer.
1. What Do You Need The Card For?
This is the first and most important question you should ask
yourself. Your answer will help to decide just what type of card
and what incentives will work best for your needs.
For example, if it is for business use, look for a card that
offers a cash-back for business purchases or membership to a
discount buying club. Most companies will offer a low
introductory rate for a specified amount of time but you need to
know what it jumps to when that said time has expired. It may
work best for your business if you find a long-term, more
moderate interest rate than be stuck changing cards every few
months to keep your interest in check.
If the card is for personal use, decide why and for what do you
really need it for. If you plan on using it instead of cash and
checks throughout the month but plan to pay it off each month,
know what the card's grace period is and what happens if you
miss it.
Pick a card that offers reward points even if you don't carry a
monthly balance. This can be a great way to rack up the frequent
flyer miles as long as you're disciplined enough to use it this
way.
2. Know The Interest Rate
Many card companies will offer an initial interest rate that is
quite low, sometimes even 0%, for a designated period of time.
This rate usually applies to both transferred balances and new
purchases.
What you need to know is what happens after the introductory
phase has ended. Will the interest then skyrocket? Will the
interest rate be more moderate as long as you have a good
payment history? Look for hidden costs such as an annual fee or
a cash advance fee. These are important to know if you plan on
using your card effectively.
3. Incentives
Many cards also offer a whole list of incentives with their
application request. Although many of these are nice, usually
you have to use your card a great deal to get them. This can
become a kind of trap. You know, buy more to save more.
If you're going to use your card anyway, then you might as well
have something to show for it. Look for cards that offer
incentives that interest you and you would actually use.