Making Sense Of Credit Card Offers

Posted by Nick Niesen on October 29th, 2010

With a number of credit card companies available, it is a tough decision as to which has the best deal. These companies call in houses, mailboxes are filled with credit card offers, even the inbox is swamped with e-mail messages with them! It is admitted that credit card means convenience.

Now, the common mistake people make is to pick at random, and this is not the wisest decision. Being well informed prior to making a credit application is very crucial.

Different card plans are available for different people. The factors that come with these plans are the age, income, number of currently owned credit cards and mode of payment.

The best way to check out the best offers is to compare the terms and conditions of these credit cards.

1. The Structure of Fees. Companies often do not charge fees for a few months after opening a credit account then starts charging after purchases are made. This and other additional fees usually are not clarified during the preliminary offer.

2. The Annual Percentage Rate (APR). The lower the APR is, the better. It is important to note if the interest rate is fixed or variable. Having a variable interest rate would mean that the company can increase the interest. Knowing the conditions of the possible increase in charges is essential.

3. The Merit Card. There are cards that offer discounts for frequent flyers on selected airlines, or rebates in certain stores. This type of system is usually pitched in by credit card companies with high yearly fees.

4. The Schedules of Payment. Knowing when the payment should be made is important because there are only certain days in a month when money would be available. It is always a good idea to pay on the actual date, though delays are sometimes unavoidable. Having the least harsh penalty for delayed payments is the best choice.

There are a number of extra features available for credit cards. Warranties, protections and insurance. Calling on local banks to determine if these features are available and if the cost will be covered or will have extra charge should be checked.

In addition, prior to selecting the card, identifying the places where it is acknowledged should be done. It won't be of any use if the credit card is not accepted in any establishment that is being visited regularly. The broader the scope of its service, the better.

To make sure a good deal is at hand, verifying the information seen in advertisements are for real. Relying solely from things that we see from flyers or on websites often is misleading. Asking for other programs or additional offers is an advantage.

With owning credit cards also comes responsibility. Wanting a credit card also means understanding why wanting one is essential, how the process runs, and which credit card suits best. With considerable knowledge about credit cards, purchasing power will be maximized and the hazards of having bad credit will be avoided.

This tedious job of finding and selecting the most suitable credit card can be long, complex and disheartening at times. Nonetheless, going through the extra mile by researching online or consulting a financial advisor just to be knowledgeable of the pros and cons is a need before filling in the application forms.