The Benefits of Having a Credit Card

Credit cards today are a different animal than they were 20 years ago. It used to be that a credit card was only used to buy things now and pay later. The fierce competition between the credit card issuers has made it possible for cardholders to take advantage of owning a credit card.

The credit card companies try to get new clients by offering rewards and perks, like cash back programs and free airfare for new customers. Low interest rates as an introductory offer are also common. These rewards usually are dependent on how much you charge on your credit card. However, there are ways to maximize what you can get out of these offers; read on to find out how to take full advantage of your credit card with these incentives.

Rewards cards: You should shop around for the best deal you can find if you decide to go with a card which comes with rewards. Find rewards which you will actually use; for example, free flights as a reward makes little sense if you don't fly often or do not plan to charge a lot on this particular card - these cards often require a lot of spending to actually get the rewards.

Try to find rewards which fit your needs. Cash back rewards are good for anyone. Always read the fine print though and be sure to ask the rep fro the credit card issuer if there are any conditions or limits attached to the rewards.

You should also ask the rep about time limits. A lot of these programs either have a limit to the amount of rewards you can claim or a time limit in which you can claim the rewards, with an expiration date.

If you are thinking of applying for a gas station reward card, be sure that there is one of those gas stations in your city first.

Low introductory rates: This one has a lot of possibilities. For instance, let's suppose that you have a credit card which has a 19% APR (annual percentage rate). You make a few small charges and have a balance which can be paid off easily within six months. Then you find a card with a one year 9.9% introductory APR for new customers. You could get this new card, transfer your old balance to it and pay it off much more quickly while saving a substantial amount of money. You could then either cancel the old card or save it in case you ever need it.

Remember to take advantage of the fierce competition between the credit card companies; it can really work out in your favor. Shop around and see what is out there, you might be surprised by what you find.

Do your research before you sign up for any cards - you stand to get some great rewards and perks this way; just don't rush into anything, there might be a better deal right around the corner.

By: Steven J. Talrechi

Steven J. Talrechi is an expert on credit and finance for 12 years. He writes about various topics on said field, including application for a credit card, and different credit card offers.

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