Deciphering Credit Card Offers
Wednesday, February 11th, 2009With the multitude of credit card offers that reach us through the mail and over the internet, it is no wonder many 
consumers feel overwhelmed in the choices they have to make. The cynical will believe that no offer is ever really a good deal and the naïve will believe they actually do qualify for every credit card offer that they have been pre-approved to receive. However, these beliefs are what get a lot of consumers int serious debt problems, especially when it comes to debt.
The reality is there are good credit card offers out there but the trick is in finding the one that woks for you and your financial situation. Here are some things you need to know about the credit card offers to help you make sure you are picking the offer that is right for you.
The first thing you want to check for in the credit card agreement is the interest rate that the card is offering. Don’t just jump for all of the 0% offers you receive because while the initial offer can be a good deal, many times once the initial offer expires, you will face higher than average APR’s. If you use your credit card often during the initial promotional period and carry over a balance, a higher APR can cost you more than you bargained for. Check out and understand the promotional 0% APR conditions carefully and make sure the card will still work for you when the 0% APR is do longer in effect.
When comparing APR’s make sure you understand which type you are getting. There are fixed rates, which stay the same throughout the life of your card, provided you adhere to the terms and conditions of the card. Variable rates can change at the discretion of the credit card company. If you opt for a variable rate card, you will what to make sure you know when the rate can change and by how much. Many credit card companies offering variable rates will change the rate without much notice.
The next item you want to look at when comparing credit card offers is the fees associated with using the card. This is especially important now that credit card issuers are working to make more money during the current credit situation. Some credit cards will charge you a fee for the application. IF you are refused the credit card, you are out the application fee. Choose a card that costs you nothing out of your pocket to apply for and then look over the other fees involved. You want to know what the annual fees are for having the card, for using the card, for transferring balances, and what to expect if you make a late payment. You also need to know what charges to expect in the even you go over your credit card limits. If you review the fees and find that there are too many or too high for you to pay reasonably.
When comparing credit cards, you might also want to check out what the credit limit is for each. There are some credit cards that will offer lower limits than others but other cards will offer limits in the thousands of dollars. The higher limits may be tempting and if you are not able to use that kind of limit wisely, you might be better off accepting a lower limit to reduce temptation. If you do think you can handle a higher credit line, you can improve your credit score.
While the credit card offer in the mail may be very appealing and seem like the right one for you, you simply will not know for sure unless you read the fine print and have a complete understanding of what kind of offer you are really getting.
