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Credit card special offers put the power of a competitive marketplace to work for you. If you use credit cards, careful attention to the top offers can give you an effective financial tool. Following are four of the top credit card special offers along with how they can benefit you and things to watch out for.
1. Low or No Interest Credit Cards
Many mailers you receive feature a blaring headline trumpeting low or even no interest credit cards. This can, in effect, give you interest-free borrowing and can provide significant savings if used well.
These credit card special offers typically include balance transfers, new purchase coverage or both. If you can transfer a balance from a higher interest rate card, there is an immediate savings to you. New purchases immediately will cost you less if you are the type of consumer who typically carries a balance on your card.
Be sure to know what types of balances the card covers and how long the low interest rate lasts. Check for transfer fees on existing balances, which can range from $15 to $75. Finally, be certain to know the penalties if you are late on a payment. Often this revokes the low interest offer, even with one late pay.
2. Points, Miles or Reward Programs
The point of credit card special offers is to give you an incentive to choose one card over another. Credit card issuers are always looking for long-term relationships with qualified borrowers.
While a low or no interest card offer has a short-term benefit of interest savings, a reward program typically is a benefit for the life of your card. These cards enroll you in a program where you receive points or miles with each dollar you put on the card. These points or miles can then be redeemed for air travel, hotel stays, consumer goods or even gasoline.
If you redeem your points as you accumulate enough to make a purchase, on average you are giving yourself a 1 to 2 percent savings on all the purchases you made. Be certain that you don’t fall into the trap of spending more than you normally would just to get the points. That is a false savings. It would be better to spend less and budget the other purchases. But if you can carefully use the card, accumulate and redeem points, and not spend more than you normally would, these are effective credit card special offers.
3. Poor Credit History Cards
Even if you have a low credit score, you will receive credit card special offers tailored to you. These cards will carry a higher rate of interest and seldom will have rewards programs. Because of your credit score, you are a higher risk to the credit card company, and they will see no need to offer you any incentives.
Still, these cards can be a benefit. If you pay the balances off monthly (and on time), you can avoid the effects of higher interest and begin to repair your credit, eventually improving your credit score and qualifying for the incentive-based credit card special offers.
4. Credit for Your Business
Whether you work for a company or own a small business, credit card companies will be reaching out to you. These cards often feature low introductory rates and welcome balance transfers (again, watch those fees.) and they typically will include a rewards program. Carefully managed, this can become a low interest line of credit for your business.
Many business credit card special offers also include enhanced data control so you can have business expenses categorized come tax time.
The key to making the most of credit card special offers is to find the offer that fits your personal financial situation, be certain you understand the terms and conditions, and use the card prudently.
The 4 Most Common Credit Card Special Offers
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