What Different Types Of Credit Card Offers Are Out There?
Written by admin on July 31st, 2010Sometimes it seems that every day more credit card offers drop onto your doormat or pop in to your email Inbox. Before you choose one, you may wish to consider:
- what your spending habits are;
- how you usually you spend your money; and
- how much per month you can afford in repayments.
Knowing the answers to these questions may help you decide which offer to choose.
Interest rate offers
Some of the most eye catching credit card offers could include the 0% and low interest rate ones. Usually the lowest rates of interest are great if you wish to transfer a balance from another credit card.
Such low introductory rates could only last for a limited period, after which the new interest rate may be much higher. This could be suitable if you wish to pay off your existing credit cards.
However, if you intend to continue spending on the card, you could wish to check what the interest rate for new purchases is. Some card transfer deals may differentiate between low rates for existing balances and charge higher rates for post transfer purchases.
Reward scheme offers
If you already participate in a customer loyalty scheme these types of credit card offers may seem familiar to you. You could get a reward scheme credit card and this may work out well if you shop at the same place. Some might also cashback as a percentage of the money that you have spent.
If you are lucky enough to be able to pay off the balance each month this is to your advantage. By paying off the balance before any interest becomes due, you could collect the “reward” and enjoy the benefits.
On the other hand, if you do not pay balances off every month, you may find that the rewards you receive may not always compensate you adequately for the interest you have to pay.
Charity credit cards
Instead of collecting rewards for you every time you spend money on your credit card, charity cards might make donations to charities instead. Charity credit card offers may be an efficient method for you to direct funds to the charity of your choice.
