Credit card companies are competing hard for your business. Even with default rates inching up the credit card portfolio is often the major profit center for financial institutions that sponsor the major credit cards. They offer “too good to be true” deals because your value as a lifetime customer is very important to them.
Some credit cards offer cash back; some promote airline miles; others entice you with gas rebates, and even discounts on new cars. Credit card companies have affiliations with almost anything you can think of. While all of those enticing credit card deals sound good, don’t simply open a new credit card account or transfer your balances because the rewards sound wonderful. Make sure it is exactly what you think it is. Always compare credit card rates and deals. Read the fine print before you commit.
If the credit card deal is offering a low or zero interest balance transfer rate, check to see how long it is valid. Make sure that the interest rates after that time expires don’t sky rocket. Also check to see what the default rates will be and what the consequences are. There are always severe consequences to making a late payment. Sometimes, those 0% interest rates can jump to 30% by being one day late on one payment. You will not find that out in the promotional material but you will find it in the fine print. The credit cards rely on people not reading those details or paying much attention to them, but make certain that you do.
So long as you know what you are getting yourself into you can take advantage of the best credit card deals and save money and build rewards every month. By transferring that high interest rate balance on one credit card to a new credit card with 0% APR for a year, you can save a ton of money and make a dent in your debt load. If your zip code is not targeted to get these credit card promotions, you can still easily find out what credit card deals are available by doing some research on the internet. The good credit card sites compare credit card rates and deals for you.
The really good sites get into the fine print and show you what the interest rates will jump to once your low interest rate period ends. Many people in over their heads with credit card debt could improve their situation by taking advantage of credit card deals. That does not mean accruing more debt; that means transferring high balances to 0% interest credit cards to pay down debt.
Credit card deal incentives are real and the rewards are real but only if you know the rules and are able and willing to play by them. You will have to do some homework to compare credit card rates and deals , and you will have to pay on time, every time.