Credit Card Offers

The number of credit card offers is so vast that you really have to know what to look for when you are thinking about applying for the right credit card to meet your needs. Many credit cards offer a large number of incentives to get you to apply, but you have to be wary; many credit card offers provide short term incentives. You really have to look at the long term effect before you make a decision, or you may find yourself strapped with an unmanageable payment.

The major incentive offered by credit card companies is almost always a very low or even 0% interest rate. Typically, credit card offers extend the time of the low percentage rate out for a period of 12 months, after which time a number of things could happen, but one thing is practically guaranteed; the interest rate will increase.

Many consumers fall into the trap of applying for credit cards based on offers of 0%, only to find themselves with interest rates at the end of the offer period that could be so high, they actually owe more on the card, if they make only the minimum payment.

Credit card offers often arrive unsolicited in the mail with a statement to the effect that you are 'pre-approved' for a certain amount of money. On the surface this might sound like a very good idea, but with a little investigation, by reading the entire statement, you will see that this is a marketing ploy. The only way that you can be approved for any credit card offer is only after the credit card company performs a 'credit check' and they are not allowed to do this without your permission. If you call the number listed on the statement, the credit card agent will request your permission to perform a credit check and then it's your decision.

The bottom line is that credit card offers are not always wise, but they are not necessarily unwise either. A good credit rating can be established by using sound judgment when you apply to a credit card offer.