Credit card companies extend a diverse range of credit card offers to entice the customers, which makes it difficult for an average customer to select the most appropriate option. Therefore, before setting out to acquire a card, one must evaluate the purpose of the credit card and the relevance of different credit card offers.
Credit Card Offers: Important Considerations
Credit card issuers often mask various terms and conditions behind the credit card offers. This ends up converting a reward into a nuisance. Therefore, to get the best credit card offer look out for the following:
‘Interest free days’ schemes
These are a common misleading feature offered by various credit card companies. Usually advertised as 'X Interest Free Days', the offer can be registered in the following ways:
· The interest does not get accumulated for the first X number of days after an initial purchase with the card. However, once this period expires, the interest is charged normally. Moreover, subsequent purchases bear the standard interest, irrespective of when the payment is made.
· Interest is not charged if payment is made within the first 55 days on every purchase.
One can clearly establish that the latter is more appealing. However, most credit card companies imply the former, when offering interest free days.
Reward point capping
While comparing reward offers, individuals tend to only take into account the conversion rate of points, for instance '1.5 points for each $1'. Although this is an important parameter, one must watch out for point capping in the offers. Point capping implies the discontinuation of points on reaching a specific limit.
‘No annual fee’ offer
A large number of credit cards come with the ‘no annual fee’ offer. One is quick to jump at the opportunity without realizing that in most cases, this waiver is only valid for the first year after acquiring the card. Moreover, in some cases, a cardholder has to spend a specific amount in a year to be eligible for this offer.
Zero percent balance transfer
Most balance transfer credit card offers have blackout or expiration dates. Moreover, credit card companies usually charge a fee for balance transfer, generally around 3% of the transferred amount.
Finally, keep in mind that most credit card offers and features are variable. They can be changed at any point of time according to the whims of the credit card issuers.