Deciphering the Many Credit Card Offers You Receive
Whether you are online or reading your daily mail, you are bombarded with bank credit card offers on an almost daily basis. How can you decipher these different offers to choose the best credit card offers for your needs? Here are some tips to use when reading credit card offers.Look Past the Offer Itself
When you receive a credit card offer, it will be full of hype and sales talk. The credit card company will offer you many incentives to help you decide that their card is the best card for you. You may be offered low interest rates, Chartered Acccounts or no interest at all, a great rewards program, and an incredibly high credit limit. While these are important considerations, the first thing you need to do is ignore them. You need to look beyond the offer itself to see what the real card is all about. Once you have determined whether or not it is a good card, you can then go back and evaluate the incentive programs.Read the Fine Print
On the back of all bank credit card offers you will find a table with important information. The credit card companies make this information surprisingly difficult to understand because they want you to focus on simply filling out the application and applying for the card. You must read this information and understand it, however, before choosing a credit card.First, check the interest rate or annual percentage rate (APR). While you may be offered a fixed rate, that fixed rate will increase if you pay your bill late or go over your credit limit. Make sure you know what the APR is and when it could change. Many cards have variable rates, and they can change at any time. You need to be aware of this before signing up for the card.
Next, look at the charges for late fees and over the limit fees. These are unavoidable, but you need to know what they are before signing up for the card. Also, check to see if there is an annual fee to use the card. Avoid signing up for any cards that charge you simply for owning the card. There are enough free credit card offers available that you do not need to pay an annual fee.
Finally, look at the grace period. The grace period is a timeframe that you are given to pay off your charges without paying any finance charges. If you have to carry a balance past the grace period, you will be charged interest on that balance.
What Are Prepaid Credit Cards?
One type of offer that you might receive is a prepaid credit card. Prepaid credit card offers allow you to apply for a credit card that you put money onto before using. Then, like a store gift card, you can use that card until the money you have put onto it is gone.Prepaid credit card offers give you the flexibility of owning a credit card without the hassle of actually applying for one. They are safer than carrying cash because they require you to sign for your purchases. However, unlike a traditional credit card, they do not come with an interest rate or fees. You simply load them with money and then use it until the money is gone. This is a great alternative for those individuals who have low credit ratings and cannot get regular credit cards with fair rates.
Other Special Types of Credit Card Offers
Once you have read all of the fine print on the various offers you are considering, you will find that many of them have the same interest rates and fee schedules. Now is the time to choose the best credit card by looking at the introductory offers. You may find that one particular introductory offer fits your needs the best.For instance, if you currently have credit card balances on cards with high interest rates, you may want to look for balance transfer credit card offers. Balance transfer credit card offers give you the option of moving your balances from your old card to the new card. In return for this, the credit card company offers you a low introductory rate for that balance for the first year or so. That introductory rate, which can sometimes be 0%, can save you quite a bit of money.
You may even find a card that offers you a 0% interest rate on purchases for the first several months. Another common offer is a cash reward when you make your first purchase with the card. Many bank credit card offers are attached to great rewards programs that allow you to earn products or cash for the purchases you make on the card. Consider all of these offers when choosing a credit card, and soon you will know the best credit card offers for your unique financial needs.
