Understanding Credit Card Offers and getting the best out of Credit Cards
Credit card companies have been around, it seems, for ages. In a market that is vicious, cut throat, competitive but also very lucrative, it's no wonder that they have to come up with new ideas to continuously attract people.
We all know that credit card use can land us in to trouble which could probably be avoided if we decide & stay away from this small plastic thing, but the flip side of the coin is really attractive as well.
What can we get out of a credit card?
A lot if we go about it the right way.
This lense will help you to understand the credit card offers that you are constantly bombarded with to find the best deal for you.
Working through the deals
hard work that will pay off in the future
Getting a credit card is one of the easiest things to do, unless you are plagued with an abominable credit history.
Sometimes even that can't stop you from having one....or more.
How do we make sure that when we decide to enter this tricky world of credit & debt, we have the safest and best possible deal which also suits our requirements?
If you are really serious about making the right choice, this operation requires you to have the right tools, proper understanding of the subject matter and patience to follow it through.
Sometimes even that can't stop you from having one....or more.
How do we make sure that when we decide to enter this tricky world of credit & debt, we have the safest and best possible deal which also suits our requirements?
If you are really serious about making the right choice, this operation requires you to have the right tools, proper understanding of the subject matter and patience to follow it through.
Getting the Right Tools
- Credit Card Tools
- When you decide to start with the information search, you might need a few tools.
The easier and most convenient place to look for those is the net. You will find credit card sites that offer comparisons between the major cards, based on all the different categories like low interest rate, rewards, business, bad credit & student credit cards etc.
Apart from the details about the card & reviews you can also find calculators to get a rough idea as to what a specific card will cost you in terms of interests & fees.
Things to compare
What parts of an offer do you need to dissect?
When looking at a credit card offer the things that make a deal worth getting are:
When looking at a credit card offer the things that make a deal worth getting are:
- Interest Rate
The interest rate or the APR, both the 'teaser' or introductory, as well as the on-going rate that you will have to live with.
Credit card offers have a diverse range of interest rates available. Whether you will be better off with a low rate or a higher then average will get you a good deal, depends on the use you put your card to.
People who can't or don't pay off the credit card every month and are charged interest should simply go for the lowset possible APR.
Credit cards that offer a 0% introductory APR, can be very handy in the hands of people who know how to do the shuffle. It is one part of the offer that should be kept in mind if you want to transfer balance and get the debt bunny off your back. This does, however, require patience & discipline.
For people who are going to pay all their dues every month, interest rate is not a big deal. There are other things to consider for you, which will affect you more.
What you should be more interested in is the grace period or interest free period offered on the card.- Fees
The next item on the dissection list is the fees.
There are various fees attached to a credit card. Annual fees, late-payment fee and over-the-limit fee, are a few examples.
As far as the annual fee is concern, no one should have to pay that, plain & simple.
Over-the-limit fee is an innovation that allows credit-card companies make extra money. Few years back the term 'limit' used to mean limit, now it only means the figure after which you will be fined. They are going to let you spend the money, only to fine you more for it.
Fees should be considered while comparing different cards. The lesser they are the better it is.- Credit Card Rewards
One good thing that the consumers can get out of a credit card is reward.
They can be in the form of cash back, points or discounts on selected purchases & outlets.
Rewards are the consideration that should be real high in the minds of people who pay their dues in full.
Mostly cards that carry higher APR and accept good credit ratings offer truly rewarding rewards.
One thing to be kept in mind is that the credit card companies are facing fierce competition amongst themselves. You get to hear offers, from rival companies, that would make you think that the company has changed its agenda from making money to spreading happiness & good will amongst people. This can be good as well as bad.
Good as you can reap more & more benefits if you play your card right.
Bad cause credit card companies are starting to embed more tricky fine prints into their deals, if you miss them you can end up in real trouble.
The insight gained...
The rule of thumb remains the same:
If you want to be good at dissecting credit card offers and find the best deal for yourself, you will have to be patient, thorough & disciplined in your money matters.
Use all the help you can get on line, as well as off-line .
Hope your operation meets success.
If you want to be good at dissecting credit card offers and find the best deal for yourself, you will have to be patient, thorough & disciplined in your money matters.
Use all the help you can get on line, as well as off-line .
Hope your operation meets success.
Credit Card News
A summary of interesting and useful articles related to credit
- The ideal credit card
- A research group set criteria for the ideal credit card.
Feedback & Questions
Please leave a comment if you like my lense, have improvement suggestions or have a question for me.
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- Buttercupcakes Buttercupcakes Aug 25, 2008 @ 9:57 pm
- I agree, dissecting a credit card is more than just checking the interest but more importantly, the real terms and conditions! If you have time, feel free to drop by my new lens on how to build good credit Thanks=)
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Reply
- Buttercupcakes Buttercupcakes Aug 25, 2008 @ 9:57 pm
- I agree, dissecting a credit card is more than just checking the interest but more importantly, the real terms and conditions! If you have time, feel free to drop by my new lens on how to build good credit Thanks=)
-
Reply
- gearon_garlic gearon_garlic Oct 24, 2007 @ 1:51 am
- So interesting and informative lens, thanks! FIVE STAR By me.
If you have some time, Please take a review to my American Express credit card lens.
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by davidm2310
My name is David and I am a financial advisor and writer of financial articles. With my lenses I hope to help you with your personal finance issues.
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