Choosing The Right Credit Card Offer

Choosing The Right Credit Card Offer

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How many credit cards do you carry? 1, 5, 10, maybe more? Most consumers carry at least one credit card, especialy when you include department store cards, gas station cards, American Express, MasterCard, VISA, Diners, Discover and others. Consumer lending is big business, an area of marketing that lenders use to fuel their businesses.

credit cardsYou probably already know that not all credit cards are alike. Some offer low rates and decent rewards while others charge higher than industry rates and offer no incentives. Likely, most of the cards you have seen fall somewhere in between.

Maybe you have considered getting a new card recently. If so, let’s take a look at some of the popular credit card offers available today:

Low (or Zero) Percentage Rate Credit Cards — Lending rates remain low and there are still credit cards available with low rates, even 0% financing for balance transfers. Typically, these special rates are in place until the transfers are paid off; new purchases are usually charged at a higher rate.

Teaser Rate Credit Cards — To get you to use a new card, some lenders will offer you a special “teaser rate” that will run for several months, usually for as long as six months perhaps for a year. Purchases can be made at a very low rate (let’s say 3.9% for twelve months) and then rise to 15.9% or higher later on. These cards are popular with consumers who want to purchase an expensive item and pay it off over several months without incurring high interest charges.

Rebate Credit Cards — Make your credit card work for you! If this sounds like a marketing ploy, it isn’t: certain credit card providers will give you cash rebates on select purchases. For example,if you spend $2000 you could have $20 or $40 credited to your account — see each offer for specific details.

Award Credit Cards — Also known as rewards cards, an award card works like a rebate credit card: you get to choose prizes based on the number of points you have accumulated with your purchases. Usually, one point is awarded for every dollar spent and you can redeem those points online or through a prize catalog provided by the credit card company.

Pre-paid Credit Cards — For the consumer with bad credit or for students who at college, a pre-paid credit card allows holders to build up their credit while still having access to plastic. You don’t have to worry about carrying around a lot of money; if your car is lost or stolen you can replace it.

Many of the card deals mentioned are for MasterCard or VISA cards, but Discover and American Express have special offers which might be of interest to you too.

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Categories: Credit Cards

Comments

  1. AirMiles Expert
    AirMiles Expert 5 July, 2008, 11:07

    I have over 17 Credit Cards.
    I regularly use only TWO
    – CitiPremier Miles (Points never expire)
    – Amex Platinum Credit Card (Membership Rewards never expire)
    Use infrequently
    – Shopping Credit Card (redeem points towards gift vouvhers)
    – Taxi Credit Card (receive points, discounts for service charges)
    – Train Credit Card (Receive rebates towards cost)
    – Visa Credit Card (ATM Machine)

  2. Matthew C. Keegan
    Matthew C. Keegan Author 7 July, 2008, 11:20

    AirMiles: 17 sounds like a lot, but there are many people who also carry 20 or more cards. Using a handful is the best practice, while stashing away the rest makes sense. Closing out your accounts should be done carefully as you risk having your credit history whacked.

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