Compare Credit Cards For Their Attractive Offers

In the US alone, the credit card companies are trying to outdo each other with the different features they incorporate in their credit cards. Different rewards and cash back offers lure customers into the trap of lavish spending since this is how credit companies earn. Remember that you provide credit companies good business with your credit purchases; you should therefore get into the matter of comparing credit cards to determine which credit card company provides genuine services that provide customer satisfaction.    

The first thing you would like your credit to have is low APR. If we are to take three credit cards as a way of comparing credit cards you will have the following possible offers in terms of low interest rates:

Credit Card A
Credit Card A has an introductory offer of 0% interest rate up to November 2010, which is about a year from now. This means your purchases will not have any add -on interest cost for a year; hence it will be like paying for cash. However if you will look at other charges, you will note that the credit card company will be charging you annual fee of 14.90% and you will be required to put up a maintaining balance on your account.

In all likelihood, this appears to be a good offer since the credit card entitles you to a 2% cash back on groceries and gas and 1% on other eligible purchases. There is no limit to the cash back you will earn and you can redeem it any time you want. In addition it does not have any expiration date.  

Credit Card B
To continue with comparing credit cards, we can have a closer look at Credit Card B, it also offers 0% APR for the first 6 months on regular purchases, and for 12 months on balance transfers. The APR after these periods will start from as low as 11.99%. The rewards look better because the cash back rate is at 5% for home improvement stores, department stores, travel, gas, restaurants, and pet stores. However there is a clause about up to 1% unlimited Cash back Bonus; while online shopping will enjoy 5% to 20% cash back rewards.

Credit Card C
Comparing credit cards will bring us to Credit Card C and you will note that a different feature is being offered. A Pay-On-Time Bonus equivalent to a full month’s interest will be the reward in exchange for 6 payments made on time in succession. 1 % Cash backs on all purchases will be unlimited while online purchases will have cash back rewards of 5% up to 20%. The introductory APR is only 3.99% for 6 months on all purchases and the APR thereafter will be as low as 11.99%.    

Comparing Credit Card A and C
When comparing credit cards, you should keep in mind that cash back rewards are actually reductions of the interest imposed on your purchases. If the credit company will not add interest, there is no other way they will earn from your credit cards. Hence clarify the issue about 0% interest rates and the annual fee charged of 14.90% offered by Credit Card A. The APR might have been re-named only as a different charge instead of adding it to the cost of your purchase.

Remember that credit cards will pay the store for the actual selling price so if there will be no APR they have no income from your transaction and will be merely paying for your purchase. It seems unlikely that credit card companies will offer 0% APR for a year at the most then give cash back rewards from 5% to 20% at the same time. Be inquisitive about these deals because they run against the grain on how credit companies earn from your credit card purchases.  

Comparing credit card C which is more realistic than Credit Card A; the introductory offer is a low APR of 3.99%, with cash back offer of 1% on all purchases. This looks more plausible because the credit card company still has 2.99% interest earned from the credit transaction. In addition, the incentive being offered is also more realistic because no cash is involved but actually a waiver of interest you will pay for after paying 6 months of paying on time diligently. Comparing credit cards closely will show that Credit Card C seems to offer more realistic card features that will benefit both credit card company and cardholder.

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