Credit Cards: How to Capitalize Owning One?
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 purchase 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.
One of the ways that card companies compete is by offering rewards or low introductory interest rates. These can be anything from cash back rewards to free flights. The reward is based on how much you use the card. There is a trick to this however and we’re going to see how to use this to your advantage.
Rewards cards: You should shop around for the ideal deal you can find if you decide to go with a card which comes with rewards. Find rewards which you’ll actually use; for example, free flights as a reward makes tiny sense if you don’t fly often or don’t plan to charge a lot on this particular card – these cards often require a lot of spending to actually get the rewards.
Look around for a reward which really fits into your plans. Cash back rewards are always good. Of course, as with anything else, always read the fine print first. Be sure to ask the credit card company rep if there are any limits on the rewards; many credit card companies allow you only a certain amount of rewards and once you claim those, that’s it.
Also ask them if there’s a time limit on redeeming the reward(s) as some are only valid for a set period of time and then they expire unused.
If you’re thinking of applying for a gas station reward card, be sure that there’s one of those gas stations in your city first.
Low introductory rates: There are a lot of possibilities here. Say that you’ve a card with an APR of 19%. You make some small buys 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.
In either event, you could take full advantage of being a credit card owner by using the credit card company’s greed against them. Competition always breeds good things for consumers. Look around and see what’s available. You might be pleasantly surprised to see advantages you never thought possible.
Do your research before you sign up for any cards – you stand to get some great rewards and perks this way; just don’t rush into anything, there might be a better deal right around the corner.
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