Many credit card offers could be dropping into your mailboxes in the coming weeks. January is a busy month when it comes to applications sent out by credit card issuers. It's not surprising, given that many people who used their credit cards heavily in December may be in need for a new one.
This is a time that many households get their credit card bill and realize how much they spent during the holidays. They look for a new credit card to transfer the balance or because they are close to the limit on their current card.
No matter what card is chosen, you should read the fine print and educate yourself about everything it has to offer such as late fees, minimum payment requirements, cash advance fees, interest rates, rewards, minimum purchases per billing period, etc.
These offers usually come with a sales letter screaming "transfer a balance for the last time", "lowest interest rate for life", or "long-term low rate deals with 0 annual fees" and on and on.
If you receive a great deal, don't celebrate right away. Just because the letter says you have a $30,000 credit line at 3.99 percent doesn't mean you do. Card-issuer letters do not always deliver what they promise. And it will say preapproved, but then they will give you a higher interest rate or a lower balance.
What you must do is to learn to read all of the print like a third-grader. And don't try to read too much into it. You'll probably need a good credit score to get those permanent-rate deals.
Remember an offer can change from its original terms if you do not pay your bill on time. If you are late with a payment only by one day the credit card company can also increase your interest rate if that is on your contract.
Due to many clauses it has been written in that the interest rate was a permanent 2.9 percent (I mean that is for eternity!) unless your payment is late. And if or when it is it jumps to 29.9 percent.
The greatest sin in debt repayment is being late. This is a huge factor that affects your credit score for a very long time also.
You can call your existing creditor and tell them that you have a 4.99 percent offer from someone else and would like something better from them. It costs approximately $200 in marketing dollars to get a good customer.
They pay a lot of money to find someone profitable and they do not want to lose one. So remember that you as the consumer have the bargaining power. And the better the customer, the more power you have.
