- Personal Finance
Make the Most of Credit Card Deals
Choosing a Credit Card
When applying for a new credit card, it is quite mind-boggling when you see how many different deals and options there are out there. American Express credit cards, Visa and MasterCard are all well known names that advertise frequently, but which one will be best for your own needs? When choosing a card it is imperative you check out the credit card rates and latest deals being offered by each company so you get the best deal for your own personal requirements.
Credit Card Transfers
Due to the very poor global economy in recent years, many people have found themselves in debt and without work. In order to buy necessary items, sometimes there is no other choice than to purchase with a credit card. However, when it comes to paying the bills, you might find that you can only afford to pay off the absolute minimum every month, and this is disastrous because you are not touching the actual debt owed but rather just paying off interest. One way of getting out of this trap is to transfer your debt from that credit card onto another one. Many companies offer credit card transfer deals which means that when you transfer your debt between companies you will be allowed a few months where no interest is charged. This allows you to pay off some of the balance owed rather than just the interest and is a good option for those who are struggling to pay their credit card bill every month.
Cash Back Credit Cards
Credit card companies are always looking for ways that they can entice new customers, and one popular deal that is commonly offered on a credit card is "cash back". This means that when you make a purchase on specified goods or services, you will receive a small percentage of your money back. It could be that every time you buy fuel for your car, you received 3% back in cash for example, so every hundred pounds you spend you will get a discount of three pounds. When looking at different cash back credit card deals be sure to make a note of what each card is offering; you do not want to sign up for a card that offers cash back on fuel purchases if you do not own a car. You will usually find that a larger cash back payment is made on items that you do not buy regularly, such as furnishings or travel discounts, where as items that are bought on a daily basis like groceries will have a somewhat lower percentage of cash back.
Cash back credit cards are only really suitable for people who are likely to be able to pay off the balance every month. If you are only paying the minimum monthly amount, you will accumulate more fees in interest than the cash you get back.
Credit Card Rewards
Credit card rewards schemes are a good option if you need items for your home, travel regularly, or often pay with your credit card. Every time you make a purchase with a credit card that has a rewards scheme, you will obtain a number of points which can later be exchanged for gifts and rewards. These typically include travel vouchers, home appliances,furnishings, and gadgets.