Why You Should Reject Most Credit Card Offers
Friday, November 03, 2006
A lot of credit card companies want you to think that their
offer is a good one - without really offering you good
features. For instance, this morning, a credit card offer came
in the mail. After looking it over, it was rejected - because
it lacked the "right features." It would have been unwise to
sign up for that card. If you are thinking about getting a
credit card - or maybe another one, there are some reasons why
you may not want to fill out the next application that comes to
you in the mail. Here are some things you need to look for to
see if it really is such a good deal.
The Interest Rate
The first reason that this credit card was not a good one was
because there were no introductory interest rates on the card
at all. It was just for one rate - 9.9%. All purchases came
into that interest bracket. Many cards will give you a 0%
interest rate as their introductory offer for up to 15 months.
That means that you pay no interest on your purchases for up to
one whole year, unless your payments are late, or if you allow a
balance to be carried over to the next month.
This particular interest rate, while not bad, is certainly not
the best, either. Some credit cards go as low as 6.9% interest,
and others may go as high as 17.9%. After the first year,
though, your interest level becomes the regular amount of the
card. Interest rates can change for many reasons - one of them
being late payments. One of the things that will effect what
interest rate you are able to get is your current credit
rating.
Reward Options
Another reason why you should not accept just any credit card
offer is because it may not give you the greatest opportunity
to benefit from the rewards. Applications sent to you, or ads
on the Internet may not cater to your particular needs. Find a
card that offers rebates and rewards on the products and
services that you use the most. Things like gasoline, air miles
if you travel a lot, groceries, discounts on hotels, etc., will
benefit you much more if you use these things on a regular
basis. Things like air miles can actually help you to get
enough air miles to make that trip that you have always wanted
- just remember to find out how long they are good for - there
is usually an expiration date after a couple of years.
Other Fees
This is one area where some credit cards can really take away a
lot of your benefits. Look for things like processing fees,
yearly fees, balance transfer fees, and fees for cash advances.
The best cards, if you can get one, often will not have extra
fees - or, possibly a minimal one.
In addition to the above, you need to know that things like
only one late payment can remove your desired benefits and put
you into the regular interest rate for the card. Other
cards may require you to have a minimum balance in order to get
their benefits.
Every credit card offer will always have some nice feature in
bold print that will get your attention. That's not where you
should look, though. Instead, focus on what is in the small
print - that's where the nitty-gritty details really are, and
you will want to read these first.
About The Author: Joe Kenny writes for the UK personal finance
sites http://www.ukpersonalloanstore.co.uk and also
http://www.cardguide.co.uk
posted by Dennis Cheesman @ 6:48 AM,
