The top credit card offers you should stay away from include those with limited benefits and cards that offer benefits which can become traps for you. Consider these four top credit card offers and your ability to take advantage of them.
The "No Interest" Offer
The "no interest" credit card is clearly among the top credit card offers. However, not all of these offers allow you to transfer an existing credit card balance. Without this, the card does not offer you the primary benefit. By transferring a balance from a higher rate card to a lower rate, you have created a no interest loan for yourself with which you can get out of debt. If the no interest offer is only for new purchases, it may end up putting you in a worse position.
The "Cash Back" Offer
Cash back credit cards return a given percentage of each purchase to you. These cards also are among the top credit card offers even though they almost always have a market rate of interest. If you can pay your balance off each month in full and avoid any interest expense, you are knocking 1, 2 or 3 percent off the cost of all allowable purchases on the card. If you cannot pay the balance off in full, interest expense will quickly erase the cash back benefit.
The "Rewards for Spending" Offer
Rewards-based credit cards allow you to accumulate points with each dollar you put on the card that can be redeemed for goods or services. This has the same net effect as the cash back card. Using the card results in goods or services at no cost, lowering the net amount you have paid for everything you charge. If you spend more than you normally would to get points, it will erase the benefit of the merchandise or services you get with the rewards. A rewards program works out to a 1 percent or 2 percent savings on what you spend. It takes only one or two purchases to wipe out all you would have saved.
The "If You Have Bad Credit" Offer
Even with poor credit, you will continue to receive credit card offers. These will carry a higher interest rate and offer fewer incentives because of the increased risk to the credit card issuer. These credit card offers can be a great way to restore your credit. However, if you are not prepared to leave bad habits such as late payments or under paying behind, this credit card will only make your financial situation worse.
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