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Credit Card Introductory Offers

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Most personal finance advice sites and debt organisations are in agreement that credit cards are the most expensive form of debt but with careful money management many consumers use credit card introductory deals as key part of their financial planning. There are even those who manage to use the almost mythical technique of credit card offsetting (where you make all your normal purchases on a credit card and then use the money saved to invest in a high interest bank account), although this requires an enormous amount of self-discipline to avoid credit card charges, let alone to make a profit. Before signing up for your credit card it pays to be aware of how to use introductory offers sensibly - here's our guide to the four most important factors to bear in mind.

Even limited research on credit cards will enable you to discover that they are one of the most expensive forms of debt, far more expensive than a personal loan, for example, and if you choose to pay only the minimum amount every month you could be paying a great deal of money to borrow a small amount. However, it is possible to use credit card introductory offers to your advantage, although the process of "credit card offsetting" has become more difficult in recent years as lenders get wise to serial card applicants. The good news is that you don't need to be a financial whiz kid to save money with your credit card - the following tips can help you get the best out of credit card introductory offers.

Firstly the idea that you can constantly switch between credit cards to take advantage of 0% balance transfers that are part of most credit card introductory offers is a myth. Lenders are taking measures to prevent and even penalise those who try to do this from implementing balance transfer charges to simply turning down applications from those who have applied too frequently. It pays to be wary of this as having an application for a credit card turned down can negatively impact on your credit rating.

Use 0% on purchases wisely. Many credit card companies offer 0% on any purchase for a limited period - MBNA Platinum, for example, are offering 0% purchases until March 2008 while Barclaycard Premium are offering a 3 month period with 0% interest on purchases. Careful spending and again, restraint, can enable you to make big savings here - especially if you are planning to make any large purchases within the contracted period. Be aware though that this many not include cash back - so use your credit card for purchases and then withdraw cash on your debit card if you want to avoid charges.

On top of the 0% balance transfer and 0% purchases, there are a host of other "sweeteners" available as credit card introductory offers and again, it pays to cast a wary eye over these. The Virgin Credit Card, for example, offers discount at Virgin Megastore & Virgin Holidays, while Egg offers up to 10% discount at selected retailers. Both offers are excellent - if you already spend lots of money with their selected retailers. Other credit cards offer an extension of your lifestyle - the new Barclaycard OnePulse, for example, allies your Oyster travel card with your credit card while the MBNA WWF card guarantees a contribution to the World Wildlife Fund for every card. In both cases you're making a lifestyle choice, without necessarily saving money.

Finally, the bottom line for most people should be the APR - that's the amount of interest you have to pay on the money you borrow. Rates are currently around 15% but some cards such as the Capital One Platinum card are offering rates as low as 9.9%. Whichever card you use the biggest money saving advice is: pay off your outstanding balance every month. By following this simple strategy you'll take advantage of the juicy incentives offered by lenders without having to pay them a penny.

Credit Card Introductory Offers

Credit card offers aren't exactly a rare occurence. In fact, many people are bombarded by multiple credit card offers each and every day. The question is, how do you know which credit card offers are the good ones and which ones should be thrown in the trash (after being shredded of course)? Follow these seven bits of advice.

1. What Does "Pre-Qualified" Really Mean?

First things first -- when you get those credit card offers in the mail that say you're "pre-qualified," it does not mean that you've been approved for the credit card that is being offered. You still have to apply for the card (and have your credit history run) before you'll actually be approved.

Many people have gotten frustrated because they respond to a "pre-qualified" offer only to find out they're not really approved.

Don't take it personally. "Pre-qualified" credit card offers are nothing more than a marketing gimmick.

2. The Razzle, The Dazzle and Then The Punch

When you see credit card offers touting very low interest rates (or even no interest at all), try to remember that these are "teaser" rates that will eventually go up (and may go up drastically). The credit card offer may still be a good deal, but that all really depends on what the interest goes up to after the introductory period.

Before jumping to apply for a low-interest credit card offer, see what the interest rate is really going to be after the introductory period is over.

3. Keep The Perks In Perspective

Many credit card offers include perks such as points or cash back that can be earned with each purchase. Remember, these perks may not be as great as they first appear.

A credit card with rewards attached also usually has a higher interest rate attached as well. If you carry a high balance on your credit cards, those perks are going to cost you big time.

4. It's Not About the Prize

Some of the credit card offers we receive don't even come by mail -- they come during checkout at the local store. Oftentimes, these credit card offers have a one-time discount attached, such as 10 to 15 percent off your total purchase if you apply on the spot (and approval is instant as well).

If you think it's a good idea to open a credit card to get the discount and then close the account afterwards, that's really not such a great concept. A part of your credit score is determined by how long you keep relationships with your creditors. If you have a history of opening accounts and then quickly closing them, it's going to impact your creditworthiness in the eyes of lenders.

5. What You Shouldn't Settle For

The credit card industry is definitely competitive. Because of this, you should never respond to credit card offers that require an annual fee or a "processing" fee (unless you have problems with your credit history).

If a credit card company requires an annual fee or charges you for processing your application, go elsewhere for your credit card needs. There are a number of credit card companies who will welcome your business (and won't make you pay extra for the privilege).

6. Seek Them Out

If you're not happy with the credit card offers you're being solicited with, it doesn't mean there isn't a credit card out there to meet your needs. You may just need to look a little harder.

There are hundreds of different credit cards available and finding the one that is right for you may just be a matter of doing a little online research. Many consumers turn to the web to find the credit card offers that are perfect for them.

7. Seek and Destroy

After you have reviewed a credit card offer, what do you do with it? I'll tell you what you should be doing.

Make sure you shred each of the credit card offers you receive before throwing them in the trash or you may find yourself becoming the next victim of identity theft.

Those credit card offers that infest your mailbox are also an identity theft criminal's best friend. If you don't want those credit card offers falling into the wrong hands, make sure you dispose of them properly.

By taking the above advice into consideration when dealing with credit card offers, not only will you be able to find the credit card that's right for you, but you'll also be able to avoid making a mistake due to credit card confusion.

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About Author

Both Jon Robson & Max Anderson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Jon Robson has sinced written about articles on various topics from Credit Card Offers. Jon Robson, a freelance writer with a keen eye for personal finance deals - in particular the uk credit industry - suggests that before you next use your credit card you should check the interest rates from at least one other competitive. Jon Robson's top article generates over 720 views. to your Favourites.

Max Anderson has sinced written about articles on various topics from Credit Card Offers, Credit Cards and Business Credit Cards. For more tips on getting the , saving money and avoiding getting ripped off, try visiting CreditCardTipEetc.com - a website that specializes in prov. Max Anderson's top article generates over 49500 views. to your Favourites.

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