5 Things You Should Know About Credit Card Promotions

You’ve seen the deals: the incredible one-time-can’t-miss credit card offers that seem to come every month in the mail. Or how about going to the store and having a cashier ask you if you are interested in opening a credit account because, clearly, retail stores offer the most mind bending credit cards deals and everyone wants to sign up for a credit card when they go shopping, right?

It’s safe to say that we are exposed to many credit card promotions. Don’t you think it’s a good idea to know something about them? Read on learn 5 things you should know about credit card promotions.

1. Interest Rates

As you are reading this sentence, I want you to visualize a car salesman screaming “0% APR” over the radio because I’m guessing you have heard this phrase before. Credit cards often talk about interest rates so it’s a good idea to know a thing or two about what that means. A good rule of thumb is to choose a card with a low rate of interest. The lower your interest rate is, the less amount of interest you have to pay to credit card companies on the purchases you make and don’t completely pay off at the end of each month.

Many credit card promotions offer 0% or near zero interest rates — but only for a brief period of time shortly after you open up an account. When considering which credit card promotion is best for you, don’t only look at the introductory interest rate but also what that rate converts to after the promotional period ends.

Keep in mind it’s always in your best interest (see what I did there) to pay off the balance of your credit card at the end of each month so you can avoid being charged interest altogether.

2. Fees

Have you ever wondered why credit card companies throw around the phrase “no hidden fees”? Well, you guessed it – certain credit card companies have hidden fees! A hidden fee is a fee that you didn’t know that you had to pay, usually listed in the very small print of your credit card agreement. These include paper statement fees, balance transfer fees and fees associated with closing credit cards. Do yourself a favor and learn about the fees so you know what to expect.

3. Your Limit

Do you want to know a true story? My friend needed to rent a car when he landed at LAX and went to pay with his credit card — but much to his chagrin, the credit card was at its limit, so he couldn’t rent the car.

Know what your credit card’s limit is and stay far, far away from it! It will save you from heartache. If you go over your limit, not only can you not use your credit card but you’ll also likely be charged an additional fee as well.

4. Rewards Programs

Consider this: credit card companies offer some pretty sweet rewards! Common rewards are for air travel, hotel stays, and cash back on your groceries. Before you sign up for your next credit card, consider which rewards you would like to use. If you choose a card that gives you the right rewards, you just may find yourself using credit cards instead of cash (which is fine as long as you pay the balance off monthly).

5. All Available Options

Hey you, impulse buyer, SLOW DOWN. When you’re surrounded with seemingly incredible credit card promotions it’s easy to take the first option available. Take a deep breath, get a grip and relax! Learn all of the options you have before you sign up for your next credit card.