How many credit cards do you carry? 2? 5? 11? If you were to add up all of your store cards, gas cards and your MasterCard, VISA, American Express, Discover and other national cards, you might be surprised at that number. Then again, maybe you have several cards but are considering finding a new card, one with a special deal not offered by your current card issuer.

Compare Credit Card Offers

You probably already know this, but not all credit card offers are the same with some offering high rates and absolutely no rewards to others which will can provide for you a low, fixed rate and special rewards. Before you shop for your next card, let’s review the variety of credit card choices out there for your consideration.

Low Interest Rate Credit Cards — Higher interest rates have made these cars a bit less common, but there are still credit cards available with low rates, even 0% financing for balance transfers. In most cases, these special rates are in place until the transfers are paid off with newer purchases charged at a higher rate.

Low Introductory Rate Credit Cards — To entice you to use a particular credit card, some credit card issuers will offer to you a special “teaser rate” that will run for a number of months, usually for as long as six to twelve months. You can make purchases at the very low rate (let’s say 2.9% for twelve months) and then pay 12.9% or more on balances after that time. These cards can be a great way for consumers to make an expensive purchase and paying off their balance over a few months time without incurring a lot interest charges.

Pre-paid Credit Cards — Consumers who have bad credit as well as students who are off to college, a pre-paid credit card allows people to build up their credit rating while still having the convenience of shopping with a credit card. No need to carry around a lot of cash, if you misplace the card you haven’t lost your money and can get a new card.

Rebate Credit Cards — Use your credit card and get paid for using it! This may sound like a scam, but it isn’t: some credit card providers will give you cash rebates on certain purchases. Spend $500 and you could have $10 credited to your account, depending on the offer.

Award Credit Cards — Also known as rewards cards, an award card works like a rebate credit card: you get to select gifts based on points you have accumulated with your purchases. In many cases, one point is awarded for every dollar spent and you can redeem those points online or through a catalog sent by the credit card company. Some issuers will automatically give you 500 or more points with your initial purchase, even throwing in a bonus offer through special promotions which can double or even triple your points during a special promotional period (for example, the holiday shopping season).

Other Special Card Deals Too

The previously mentioned credit cards choices are typically MasterCard or VISA network special offer credit cards, but American Express and Discover have deals which may be worth a look too. Manage your various rebate cards with this free download to help you get the rebates and rewards coming to you.

Tags: American Express, Credit Cards, Discover, finances, MasterCard, rewards cards, VISA

Pictured: The Schumer Box

Shopping For A New Credit Card

You’re shopping for a new credit card and you’ve narrowed down the offers to a handful that seem right for you. This was no small task on your part as there are thousands of credit card offers available today, even scores from the same provider.

Picking the “winner” will depend on a number of things, key elements you value and expect from your card. Unfortunately, you may still be having a problem going through all of the fine print, trying to determine exactly what you’re getting and just what your responsibilities are as a card holder.

There is a way for you to determine if a particular card meets your needs without stinging you with a bunch of surprises later on. Thanks to the work of U.S. Senator Charles Schumer, every credit card must come with specific disclosure information, details known in the consumer industry as the Schumer Box.

The Schumer Box

The Schumer Box mandates the following information be disclosed with your credit card offer:

Annual Percentage Rate (APR) for purchases: The interest rate you must pay on your credit card balances. This line will tell you whether you are receiving an introductory rate and how long that rate will last. Many rates are variable and will change as the prime rate goes up or down.

Other APRs: Features the rates you will pay on cash advances and balance transfers if you choose this option.

Penalty Rates: On the same line as “Other APRs” the credit card issuer must tell you what your penalty rate is if you are late making payments and what action triggers the higher rate. In this example your interest rate suddenly skyrockets to 30.99%.

Method of Computing the Balance for Purchases: There are different ways a credit card issuer can compute balances. Average daily balance calculates your interest charges on one-cycle billing; while two-cycle average daily balance will mean you pay interest on debt you’ve already paid off. Choose the former if you want the better plan.

Annual fees: Most issuers do not charge an annual fee, but if they do that information must be included. Airline cards and some rewards cards typically charge a fee while most other cards do not.

What’s Missing?

Of course, the Schumer Box isn’t perfect as some information that consumer advocates say should be disclosed is hidden away within the fine print. These include:

Default rate applied to other creditors. If you are late with your electric bill, will your credit card issuer suddenly jack up your interest rate even if you are on time with them?

Rate hikes. If your credit card issuer has a provision where they can hike up your interest rate at any time or for any reason, then you’ll want to avoid these cards.

Ultimately, you as the consumer will make the final determination about a credit card offer and whether it is worth it to you. Do your homework and compare credit card offers to find the best card for your particular needs.

Tags: annual fee, Consumer Financing, credit card disclosure, Credit Cards, finance charges, penalty APR, rebate credit cards, rewards cards, Schumer Box

Credit cards are the backbone of the financing industry, driving profits to those institutions who manage their programs well. Competition for customers is fierce and, although consumers typically hold 4, 6, even 8 or more cards, getting them to use one card more than the rest is where profits can be found.

It doesn’t hurt that you run a monthly balance either, for the credit card issuer that is.

One of the most popular lures of credit card issuers are “rewards cards” those credit cards which offer incentives when used. Airline affinity cards were some of the earlier and most popular rewards cards created, but today that category has expanded as issuers contrive different ways to hook customers.

While some consumers still like to accumulate airline miles which can be used toward free flights, upgrades, even hotel stays and car rentals, their popularity has decreased over time. Airlines have made it more difficult to redeem accumulated points and points tend to expire faster than they can be redeemed.

Perhaps the best rewards card out there is the one you can tailor to your specific needs. These cards offer cash back or points toward other rewards, which typically include household items, sporting equipment, hotel stays, restaurant meals, etc. But, the rewards card game only becomes worth playing when you keep the following “rules” in mind:

No fees, no expenses, no monthly balances — Rewards cards should be obtained for free, with no annual fees, and they must be paid off monthly in order to reap the benefit of having one. As most rewards cards charge a high interest rate, carrying balances will serve to cancel out the benefit of accumulating points.

Free points — Oftentimes, to sweeten the deal, a credit card issuer will deposit a large sum of points in your account following the first time you use the card. This means that if you charge your breakfast at McDonald’s, you could be rewarded with an extra 2500, 5000, or even 10,000 points by using the card. From the start, you probably already have enough points to get a free gift, but resist that temptation and keep on accumulating for bigger and better things.

Cash in before they expire — Cards with points that never expire are a rarity as many programs start to remove points after two or three years time. Keep track of your points and save up for the bigger ticket items or cash rewards when you patiently wait to hit the next plateau. Many issuers offer further incentives if you keep accumulating; just don’t lose sight of those points which could start expiring if you wait too long.

Compare offers — Not all offers are the same, though most will pay one to three cents (points) for every dollar spent. Some will pay up to five points on select purchases, such as gas station fill ups, pharmacy visits, and grocery store purchases.

What is the best way to play the game? Answer: familiarize yourself with the credit card issuer’s rewards programs including the occasional program changes which are included with your monthly statement. Look for monthly specials too as that is one way for issuers to move discontinued or slow redeeming merchandise.

You can play the rewards card game and win: just follow the rules and you could score big!

Tags: affinity cards, airline miles, American Express, Credit Cards, debit card, Discover Card, MasterCard, rewards cards, VISA