Why You Should Reject Most Credit Card Offers

A lot of credit card companies want you to think that their offer is a good
one - without really offering you good features. For instance, this morning,
a credit card offer came in the mail. After looking it over, it was rejected
- because it lacked the "right features." It would have been unwise to sign
up for that card. If you are thinking about getting a credit card - or maybe
another one, there are some reasons why you may not want to fill out the
next application that comes to you in the mail. Here are some things you
need to look for to see if it really is such a good deal.

The Interest Rate

The first reason that this credit card was not a good one was because there
were no introductory interest rates on the card at all. It was just for one
rate - 9.9%. All purchases came into that interest bracket. Many cards will
give you a 0% interest rate as their introductory offer for up to 15 months.
That means that you pay no interest on your purchases for up to one whole
year, unless your payments are late, or if you allow a balance to be carried
over to the next month.

This particular interest rate, while not bad, is certainly not the best,
either. Some credit cards go as low as 6.9% interest, and others may go as
high as 17.9%. After the first year, though, your interest level becomes the
regular amount of the card. Interest rates can change for many reasons - one
of them being late payments. One of the things that will effect what
interest rate you are able to get is your current credit rating.

Reward Options

Another reason why you should not accept just any credit card offer is
because it may not give you the greatest opportunity to benefit from the
rewards. Applications sent to you, or ads on the Internet may not cater to
your particular needs. Find a card that offers rebates and rewards on the
products and services that you use the most. Things like gasoline, air miles
if you travel a lot, groceries, discounts on hotels, etc., will benefit you
much more if you use these things on a regular basis. Things like air miles
can actually help you to get enough air miles to make that trip that you
have always wanted
- just remember to find out how long they are good for - there is usually an
expiration date after a couple of years.

Other Fees

This is one area where some credit cards can really take away a lot of your
benefits. Look for things like processing fees, yearly fees, balance
transfer fees, and fees for cash advances.
The best cards, if you can get one, often will not have extra fees - or,
possibly a minimal one.

In addition to the above, you need to know that things like only one late
payment can remove your desired benefits and put you into the regular
interest rate for the card. Other cards may require you to have a minimum
balance in order to get their benefits.

Every credit card offer will always have some nice feature in bold print
that will get your attention. That's not where you should look, though.
Instead, focus on what is in the small print - that's where the nitty-gritty
details really are, and you will want to read these first.

About The Author: Joe Kenny writes for the UK personal finance sites
http://www.ukpersonalloanstore.co.uk and also http://www.cardguide.co.uk