All About Credit Card Offers
Since the start of the credit crisis and housing meltdown, most Americans aren't receiving the number of credit card offers they once were, but they are still a common sight in most of our mailboxes.
One thing to keep in mind is that these offers are not acts of charity on behalf of the credit card companies.
They have only their best interests in mind.
You must be concerned with your own interests and carefully scrutinize any offer that you consider accepting.
Your first step is to decide what type of card is right for you.
All cards are not created equal and many offer perks in certain areas.
Obviously if you don't have any interest in that area, then the perks will be wasted.
The companies depend on this fact.
On the other hand, if you are a frequent traveler and a card offers cash rewards for all tickets purchased with the card, that is something to consider.
Don't be swayed by these so-called perks.
They are great if you use the card responsibly and pay your balance each month.
But if you start accumulating interest and other charges, they quickly lose their benefit.
If your credit isn't up to par, you can still take advantage of offers that allow you to place a security deposit.
These aren't actually credit cards since you can only use what you have in your account, but they function like credit cards when it comes to establishing a good credit record.
After several months of paying your bill on time and showing responsible behavior, the company will most likely offer you a standard card.
Remember, it doesn't matter how great a credit card's perks if you incur fees by making late payments or going over the limit.
Doing this just once can often wipe out all the benefits you could expect for an entire year.
Don't let your credit card balance get out of control.
It's OK to carry a small balance and your credit score can often improve slightly if you do so, but keep is below 20% of your total credit.
For example, if you have two cards, each with a $2500 limit, you should never owe more than $1000 between the two at the end of the month.
As your credit score improves, the number of offers you receive will grow also.
You will see many cards offering you 0% interest for up to a year.
Many people jump at this offer, use the card to finance a vacation or a luxury purchase, fully intending to pay off the balance before the interest begins to accumulate, only to find at the end of the grace period that they weren't able to do so.
Suddenly the high interest rate kicks in and they fall further behind in their plan.
This often leads them to take another offer to transfer the balance.
Each time they do this they damage their credit.
Eventually the offers quit coming and they are left with the bill.
Capitalize on your Card If you have a card that gives you rewards or perks, find a good way to keep track of them and don't let them go to waste.
Make the credit card companies honor their offers and get what you deserve.
One thing to keep in mind is that these offers are not acts of charity on behalf of the credit card companies.
They have only their best interests in mind.
You must be concerned with your own interests and carefully scrutinize any offer that you consider accepting.
Your first step is to decide what type of card is right for you.
All cards are not created equal and many offer perks in certain areas.
Obviously if you don't have any interest in that area, then the perks will be wasted.
The companies depend on this fact.
On the other hand, if you are a frequent traveler and a card offers cash rewards for all tickets purchased with the card, that is something to consider.
Don't be swayed by these so-called perks.
They are great if you use the card responsibly and pay your balance each month.
But if you start accumulating interest and other charges, they quickly lose their benefit.
If your credit isn't up to par, you can still take advantage of offers that allow you to place a security deposit.
These aren't actually credit cards since you can only use what you have in your account, but they function like credit cards when it comes to establishing a good credit record.
After several months of paying your bill on time and showing responsible behavior, the company will most likely offer you a standard card.
Remember, it doesn't matter how great a credit card's perks if you incur fees by making late payments or going over the limit.
Doing this just once can often wipe out all the benefits you could expect for an entire year.
Don't let your credit card balance get out of control.
It's OK to carry a small balance and your credit score can often improve slightly if you do so, but keep is below 20% of your total credit.
For example, if you have two cards, each with a $2500 limit, you should never owe more than $1000 between the two at the end of the month.
As your credit score improves, the number of offers you receive will grow also.
You will see many cards offering you 0% interest for up to a year.
Many people jump at this offer, use the card to finance a vacation or a luxury purchase, fully intending to pay off the balance before the interest begins to accumulate, only to find at the end of the grace period that they weren't able to do so.
Suddenly the high interest rate kicks in and they fall further behind in their plan.
This often leads them to take another offer to transfer the balance.
Each time they do this they damage their credit.
Eventually the offers quit coming and they are left with the bill.
Capitalize on your Card If you have a card that gives you rewards or perks, find a good way to keep track of them and don't let them go to waste.
Make the credit card companies honor their offers and get what you deserve.
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