Take Full Advantage of Owning a Credit Card | Credit

By StevenJ.Talrechi
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Credit cards today are a different animal than they were 20 years ago. It used to be that a credit card was only used to buy things now and pay later. The fierce competition between the credit card issuers has made it possible for cardholders to take advantage of owning a credit card.

Credit cards compete for your business by offering incentives such as low introductory interest rates or rewards to new customers like free flights and cash back. These rewards are generally based on how heavily you use your card. There's a trick to these incentives and we'll show you how to take advantage of these incentive programs.

Rewards cards: If you are going to go for a card that offers rewards, do yourself a favor and shop around some. Look for cards that offer rewards that fit your style. For instance, many free air fare rewards require large amounts of spending to get enough points to earn the free air fare. Hence, if you are not a frequent flyer or do not plan to charge large amounts on the card, this would be a bad choice.

Try to find rewards which fit your needs. Cash back rewards are good for anyone. Always read the fine print though and be sure to ask the rep fro the credit card issuer if there are any conditions or limits attached to the rewards.

Additionally, ask if there is a time limit on the rewards - they will sometimes only be valid for a limited time and will expire if you don't use them.

If a gas station reward card looks tempting to you, make sure that there is a participating gas station near you before you sign up.

Low introductory rates: This is an interesting one. Say you have a credit card that carries a rate of 19% per annum (yearly). You have a small balance on it that can be easily paid off in say 180 days. In your shopping, you find a card that offers a 9.9% rate for new card clients for the first 12 months with no annual fees. In this situation, you could essentially take that card, transfer the balance to it and pay it off with less interest in less time. This could literally save you hundreds of dollars very quickly. The old card could be canceled or, if you have held it for some time, saved for emergencies.

Remember to take advantage of the fierce competition between the credit card companies; it can really work out in your favor. Shop around and see what is out there, you might be surprised by what you find.

Do your research before you sign up for any cards - you stand to get some great rewards and perks this way; just don't rush into anything, there might be a better deal right around the corner.

About the Author

Steven J. Talrechi is a veteran on credit for over 10 years. He authors various topics on said field, including applying for a credit card, and different credit card offers.

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