The Lower Your Credit Card Deal Rates, the Bigger Your Profit?
11/09/2007 | Choosing Credit Card
What are the credit card deals most people are after? Right, the ones that give maximum profit. No annual fee, low APR credit cards are a wanted catch for any credit card holder. And credit card companies that are well aware of this fact overwhelm you with the most enticing offers on every corner. But what you should always remember is that their primary aim is not your profit, as long as it concerns their financial interests. Credit companies always put their own benefit in the first place.
Once you come across one of the deals with no annual fee and 0% APR, remember that there is no such thing as free breakfast. Credit issuers do not ever sacrifice their profit. So, every time you see such offers, know that this is 99% another commercial trick that is meant to claim your attention and hook you in applying for such a card.
Of course, that would be great to have a plastic with life-long 0% APR and no fees. But you clearly realize that this is impossible. Such cards do exist, but their gracious perks time expires on the last day of your introductory period.
So, you cannot kill two birds with one stone. All you need to do is just to set your priorities right and choose one of the above-mentioned perks.
The answer to the question "How to define what is better for me: fee-free or low APR credit card?" is easy. Just choose what perfectly fits your financial needs.
Fee-free cards are very favorable in case you do not carry large balances and do not plan big purchases. Such cards are perfect for everyday needs. With no fee cards you will not overpay for your merchandise.
Low APR credit cards are great for saving money on your monthly payments if you make large expensive purchases, carry a considerable balance, etc. Cards with low rates are pretty hard to get. Banks usually issue such cards to clients with good or excellent credit score.
It should be mentioned that, as a rule, low APR and no fee features are mutually exclusive perks. As it has been mentioned above, these two features can be combined during your introductory period. The main thing here is to remember the expiration date of the period and to plan big expenses in advance. Then you will manage to kill one bird and, at least, knock the other senseless.
The first and the basic rule of making any kind of a credit card deal is reading carefully its terms and conditions. And to never skip the fine print, as it usually conceals the most important information about your credit offer. Those little-bitty letters are another card issuers' trick that is meant to dull your vigilance.
Keep your eyes on the ball, read every letter of the fine print. If you have some unclear or elusive points you can contact the representatives of your credit card company and get the answers to all your questions.
So, hunt down your perfect credit card offer, whether it will be a low APR or a fee-free plastic, using this guide you will never miss your chance to make a highly profitable deal.
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Comments
lita ford, 08:25 AM, November 09, 2007
the problem is that these sweet offers are available only to those having good credit and stuff. what should i do?
Heather, 08:21 AM, April 16, 2008
I believe, Lita, you are to improve your credit score))) as for me, I prefer low rate card deals, they save me a good deal of money.
DANIEL ESSOUN, 06:04 AM, July 03, 2008
PLZ ,I WANT CREDITCARDS WITH NO FORMS
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