The Benefits of Having a Credit Card
Credit cards are a completely different ball game than they were in the 80’s. It was once the case that the only use for a credit card was simply to be able to buy something and pay for it later. Now though, competition between the credit card companies is so stiff that they are offering all sorts of rewards to try to attract more clientele.
The credit card companies try to get new clients by offering rewards and perks, like cash back programs and free airfare for new customers. Low interest rates as an introductory offer are also common. These rewards usually are dependent on how much you charge on your credit card. However, there are ways to maximize what you can get out of these offers; read on to find out how to take full advantage of your credit card with these incentives.
Rewards cards: If you are going to go for a card that offers rewards, do yourself a favor and shop around some. Look for cards that offer rewards that fit your style. For instance, many free air fare rewards require large amounts of spending to get enough points to earn the free air fare. Hence, if you are not a frequent flyer or do not plan to charge large amounts on the card, this would be a bad choice.
Shop around a little and find a reward that works for you. Cash back rewards are very popular. Be sure to read the fine print before you apply for the card. Ask the rep if there is a limitation on the amount of rewards you can claim. Some card companies will only allow you to claim a specific amount and once you get there, the rewards disappear.
You should also ask the rep about time limits. A lot of these programs either have a limit to the amount of rewards you can claim or a time limit in which you can claim the rewards, with an expiration date.
If you are thinking of applying for a gas station reward card, be sure that there is one of those gas stations in your city first.
Low introductory rates: This one has a lot of possibilities. For instance, let’s suppose that you have a credit card which has a 19% APR (annual percentage rate). You make a few small charges and have a balance which can be paid off easily within six months. Then you find a card with a one year 9.9% introductory APR for new customers. You could get this new card, transfer your old balance to it and pay it off much more quickly while saving a substantial amount of money. You could then either cancel the old card or save it in case you ever need it.
In either event, you could take full advantage of being a credit card owner by using the credit card company’s greed against them. Competition always breeds good things for consumers. Look around and see what is available. You may be pleasantly surprised to see advantages you never thought possible.
Always do your homework ahead of time. You can gain a lot by doing this. Don’t be in a hurry to sign up for the first credit card which waves a reward your way.
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Filed Under Business TipsComments
Got something to say?
You must be logged in to post a comment.
