Have you ever noticed how people in credit card commercials are really, really happy about their decision to go with a particular credit card? That's because the commercial is designed to gain as many new credit card customers as quickly as possible. These deals are front-loaded with enticing features like zero-percent interest, cash-back incentives and double-the frequent flier miles. But beware...most all of these credit card offers also offer something else...the small print.
When deciding which credit card reward program (cash-back, balance transfer, frequent flier miles, etc...), always compare what the other credit card companies are offering along with what your own individualized needs are. Your spending habits, your lifestyle, your needs all should be major variables to consider when deciding which is the best credit card deal. Because, as the old saying goes, "Not all credit cards are created equal."
As with any product, credit cards are offered with an abundance of incentives attached directed at a varied demographic. College students are hit daily with a marketing blitzkrieg of low-interest and low APR credit card offers. Business travelers are inundated with frequent flier and hotel marketing tactics. Some cards offer the credit card consumer the option of transferring the balance of one credit card to another with the promise of a lower interest rate. Knowing what you need and your own personal spending habits will better prepare you for your own decision.
Low Interest Rate Credit Cards
The method "The hand is quicker than the eye" is used to entice possible credit card customers with low or zero-percent interest rates. The trick to this offer though is that annoying small print. What usually happens with these cards is the low interest rate turns out just an "introductory rate." What the credit card company doesn't say in the commercial is that the low APR it is offering will go up substantially after a set amount of time. That rate could even go up earlier than that if the consumer is late on his payments.
Credit Cards with Open Offers
Other credit cards, the more established credit cards like American Express and Discover, don't rely so heavily on the "frills method." These credit cards tend to be more open in their offers. They often offer less cash-back and offer fewer frequent flier miles than the other cards. The drawback to these cards though is the more restrictive credit screening process. If you have bad credit or no credit, it's nearly impossible to get one of these cards.
Making a Side-by-side Comparison of Credit Cards
Your best bet is to do a side-by-side comparison of all of the credit card offers you are interested in and determine which is best for you. You can use methods as simple as a pencil and a piece of paper or you can be as technologically advanced as using one of the many credit card analyzers offered on the World Wide Web. There's a very popular credit card offer analyzer found at www.credit-land.com.
Most of these analyzers will let you choose which variables you want to compare: APR, cash-back, low or zero-percent interest, frequent flier miles and purchase credits. The analyzer will compare all of the credit cards you are interested in and display them in a form that will best help you determine which card is for you.
Credit Card Companies' Intangibles
There are also some intangibles that you should be aware of that are specific to certain credit card companies. Date and location restrictions on frequent flier programs; double your points if you shop at a particular retailer; points or miles that are transferable to other credit cards are but a few of the hundreds of intangibles that may be of interest to you.
But no matter if you use a pencil and paper or you use an online credit analyzer to help you make your decision, as long as you have a clear picture of what credit card deals are available, you will be able to make a better decision. Just keep your eyes open.
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