Credit cards can be a wonderful thing, and in a capital driven economy where banks and companies are competing for consumers, the rewards can be high. Yet this is not always the case. Although the CARD act of 2009 was created to provide a tighter reign on banks by restricting their ability to scam unsuspecting card holders into contracts with high interests and fees, banks are still coming up with new ways to make big money by getting around them. Therefore in order to keep reaping the benefits of a credit card without inadvertently falling for the unadvertised fine details which entail high membership costs, unexpected fees and policies, be sure do your homework before you sign up.
Read the Fine Print
You might think you are getting a fantastic deal only to find yourself paying exorbitant fees at the end of the year that far exceed your savings. Read the fine print before you decide to go with a credit card. You might also find after reading the fine print that one bank is actually better than another when you look beyond the advertised numbers. For example, American Express Delta Gold SkyMiles Card has a $99 annual fee and comes with a $99 companion certificate, while the Platinum SkyMiles Card that is also offered by American Express has a $150 annual fee, but comes with a free certificate. Obviously the $198 card that offers its members a higher annual fee is the better deal. In addition, mileage cards and the such can advertise great benefits which in all actuality translate to false or minimal savings. Don’t lose out on the real rewards by not reading the fine print.
Check the Added Benefits
Great perks can supersede numbers. If you are a frequent international traveler, having a high annual fee is nice but will do nothing for you when you need to use your credit card in an international country. Therefore you should consider going with a well known credit card company like the Visa which is the number one credit card used in the world and is accepted in over 200 countries and territories. On the other hand, for those with less than perfect credit, a credit card company like First Premier Bank Credit Card is the best option. Other added benefits include bonus travel miles, points, cash rewards, sign-up bonuses and so on. The Capital One credit card has become known for its hassle free rewards system while other cards more than pay for their annual fees with rewards like travel miles or gas discounts. Other credit cards like the Aussie credit card associated with MasterCard can be used around the world and offers an extremely competitive rate on balance transfers starting at 2.99% and 9.99% on p.a. purchases for the first year. So in addition to reading the fine print, determine which credit card rewards are best for your particular needs and situation.
Fools Rush In
The increased number of credit card companies has translated to good news for consumers as the banks compete for their attention and business. Don’t rush into the first offer you find. Be sure to compare banks and rewards. For example, the new Chase United Mileage Plus Explorer Credit Card offers its holders more than just miles, it gives them the option of priority boarding and free bag check-ins which translate to convenience and savings. In addition to seasonal low APR offers, companies will occasionally offer benefits like large sign-up bonuses in statement credit, cash, points or even free tickets so therefore patience and good research pays off in the end.