When deciding on which credit card to apply for, it’s important to consider the various offers available to you. Regardless of the type of card you’re looking to get, lenders have been hard at work providing the best possible offers on the market to entice you to apply. If you play your cards right, you can choose some really great offers and make the most of your credit card application process. This being said, you don’t want to get lured into a good offer to find out that it will cost you in the long term. High interest rates can often offset the benefits of these offers if you happen to carry a balance on your credit card. This is because lenders often compensate themselves using interest rates. It may not seem like interest rates charge a lot per month, but it really adds up over time.
In this article, we’re going to outline some of the various offers that credit card companies may offer you when you first apply for a credit card. The offers will be divided into categories so you can take a look at what best suites your particular needs.
When people speak of offer categories they normally first think of sign up bonuses and interest free periods. While these initial sign-up perks are great, credit card companies also offer long term solutions that can be great if you pick the right one. For this article, we will look at four different types of offers: sign up bonuses, interest free periods, travel perks, and low interest cards.
- Sign Up Bonuses – Sign up bonuses are an incentive that credit card companies offer to prospective clients. This normally comes in the form of frequent flyer or rewards points which can be redeemed for travel or other items. The amount on offer will fluctuate as various deals emerge and expire – you’ll sometimes find that up to 100,000 points are offer from a particular lender. Typically, the top rewards bonuses are at around 50,000 points, so it may be worth waiting for larger sign up bonuses if you’re not in a rush to get a new card.
- Interest Free Periods – This is one of the best offers you can be given. Some lenders will offer you an interest free period of between three and eighteen months. This is a great way to reduce the cost of borrowing, and can help you make an initial large purchase without having to worry about interest. This is also great if you decide to make a balance transfer – in which you transfer your balance on a current card to a new one – as you won’t have to pay any interest on your current balance for the foreseeable future. It’s a great way to pay down your debt.
- Travel Perks – Outside of rewards and airline miles, many cards will offer you travel perks. This includes features such as lounge access, extra baggage allowance, and fast track immigration control. These are great added benefits for those who travel frequently. Take a look at the various travel cards to see what added perks they may be able to offer you.
- Low Interest Cards – In terms of true value, low interest cards are the way to go. This is especially true if you plan on carrying a balance on your account. Some lenders are now even offering people rates below 10% APR. This is incredible given that many borrowers pay up to 25% per annum on their credit cards.
What to Look For
You should decide which offer is more suitable depending on your particular needs. If you are someone who uses your credit card often, carries a balance, and needs to save money – a low interest or interest free period card is the best offer for you. If you’re someone who travels very regularly and enjoy the comforts of additional perks, a travel card is probably your best option. For those who are considering a big trip overseas in the next year, taking advantage of a sign-up bonus is one way to greatly reduce the cost of your upcoming travels. Regardless of the offer you decide to opt for, make sure you go with a reputable lender that has a longstanding track record for customer satisfaction – you don’t want to end up being taken for a ride by a lesser known credit card provider!