Shopping for The Best Credit Card Deals
You pay your bill off completely every month. You pay the minimum due every month, and you let a manageable amount revolve on your credit card. You pay the minimum due every month and your credit cards hover near their maximums. These are all payment profiles, one of which probably fits most credit card users, and there are a number of different credit cards that are tailored to offer the best value for any one of these scenarios. Match the right card with your spending and payment habits and you maximize your savings. Fail to do so and you might spend hundreds or even thousands of dollars needlessly.
You might be one of the hundreds of thousands of consumers who are spammed weekly by credit card vendors either by email or regular mail, and if you've chosen a credit card from the selection that has shown up in your mailbox you've probably not chosen the best one available for your particular spending pattern. Credit cards are big business today. Credit card vendors offer a huge array of incentives to lure your business. Four of the most common of these are cash back rewards, award point good for travel services and merchandise, 0% balance transfers and low interest on outstanding balances. Some even offer you the ability to custom design the picture on the card!
Every credit offer that is ever made to you must come complete with a Truth in Lending Disclosure - it's the law. In the cases of those offers that come in the mail, I make it a game to read this disclosure before the whole thing goes in the trash (which is almost always before it makes it past the garage). The interest rates must be posted in those disclosure statements, and the ones that come in the mail are almost always not the best deal that you can get. As a matter of fact, very often they are humorously high, bordering on predatory.
While you were scrutinizing that credit offer that came in the mail, or the one that they were offering at the mall kiosk, you may have noticed that the focus of their sales pitch was on one of these four types of rewards: 0% balance transfers, cash back, low interest rate(s) or award points. Also, whatever their area of focus, they didn't exactly shine in the other three areas and may actually be extremely predatory in one or more of those. Here are a few tips you can use to choose the right credit card for your payment and spending habits:
1) If you have a habit of paying the complete balance on your credit card every month, you shouldn't be too concerned about the interest rate on the card. However, don't discard interest rate completely! Pay special attention to the grace period that the credit card offers. The grace period is the amount of time between when you purchase something with the credit card and when they begin to charge interest on that charge. Some credit card companies begin to charge interest on the date of the purchase - others have a grace period that extends until the end of the calendar month, or for 30 days. A longer grace period will save you money. Beyond that, you might want to choose a card that offers reward points or, if you have balances on other credit cards that are charging interest, a card that offers 0% interest on balances transfers may be the choice for you.
2) A majority of credit card users maintain a manageable balance on their credit cards, usually drifting between zero and forty percent of the credit card maximum. If this is typical of your usage pattern then the interest rate offered should be of concern to you, but you may want to also take advantage of some of the other benefits offered such as cash back on purchases. This is a good, convenient, responsible use of your credit, and makes you an attractive customer to credit vendors; you prove that you are a good credit risk, you pay your bills in a timely manner, and you maintain a positive balance which makes you a good customer.
3) If your credit cards are always max'd out - at or near their limits - then interest is king. In choosing a credit card you should absolutely find the card with the lowest interest rate available. It may even make sense to pay a small annual fee just to drive the interest rate as low as you can. Don't depend on credit card marketing material that comes in the mail to help you find the best deal - shop for credit cards that offer the very lowest interest rate available, and the easiest way to do this by far is on line. With a low interest rate you can take control of the money that you pay in interest on your outstanding balance.
4) Be sure to pay your bills on time. This is important regardless of your history or credit balance. Also, always pay the minimum due at the very least. Credit card vendors often raise the interest rate on your credit cards if you pay too little or too late - they can do this without telling you, and late payment on one card can affect the interest rates on all of your other cards. Be sure to read your credit card statement carefully every single month. Pay special attention to the interest rate that they're charging you. If it goes up, it might be time to move your credit account to a different credit vendor.
The smarter you are as a consumer, the better your chances are to save serious money; this is true in most business and is true with credit cards. You can save a ton of money by shopping for the right credit solution - find one that fits your spending habits and your payment schedule and it can amount to hundreds or thousands of dollars per year in savings. Be credit smart: develop a habit of reviewing the credit cards in your purse or wallet several times a year and always be shopping for better offers. Chances are, if you're using a credit card that you've had in your wallet for over a year or two, there are better deals out there.
About the Author
The author has made a living helping individuals with their credit needs and low interest credit card product options for over twenty years. Click Here to shop for low interest, no interest, reward, prepaid and 0% balance transfer credit card products.
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