Credit cards today are a different animal than they were 20 years ago. It used to be that a credit card was only used to buy things now and pay later. The fierce competition between the credit card issuers has made it possible for cardholders to take advantage of owning a credit card.
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.
Additionally, ask if there is a time limit on the rewards - they will sometimes only be valid for a limited time and will expire if you don’t use them.
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: There are a lot of possibilities here. Say that you have a card with an APR of 19%. You make some small purchases and have a balance which is small enough that you can easily pay it off in 180 days or less. You then find an offer for an introductory rate of 9.9% - you can transfer the balance from your old card onto this one and pay it off faster, saving a lot of money on interest in the bargain. You can either keep your old card for emergencies or cancel it.
Keep this in mind - when the credit card companies compete, you come out on top. Don’t be afraid to shop around for the best offer - the credit card companies want your business. You might be surprised by the deals you find!
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.