There are currently hundreds of credit card offers on the market. It is likely the case that you’ve been given credit card offers from your own bank on several occasions, as well as asked if you want to join store credit card programs from such places as Target and Macy’s. The sheer amount of credit card offers on the market may be overwhelming to you. Luckily, it is pretty easy to pick out the good deals from the bad. Here are six warning signs that a credit card deal isn’t worth your time.
If you tend to carry a balance on your credit card then you will have to handle interest charges. The higher your credit card’s APR, the more interest you must deal with on your balance every month. If you tend to carry a balance, opening a credit card that has a high APR Will not benefit you in any way. Instead, choose a credit card deal with a lower APR, and try to lower your balance in order to save even more money.
Customer Service Is Not Helpful
If you call the credit card company’s customer service in order to inquire about a question that you had on their deal, and they were rude or not helpful, that is a sure sign to run. Any sign that a credit card issuer is not helpful means that you should take your business elsewhere, as there are plenty of other credit card companies as well as credit unions and banks who will offer you excellent customer service from the get-go.
Doesn’t Offer a Bonus Reward System
In this day and age, a credit card should offer a reward program upon signing up. Rewards can come in various shapes and sizes. Some cards will provide their customers with special discounts. For instance, the Target Visa card takes off 5% on all purchases made at Target. Other credit cards will give points that you can use in different ways such as for airline miles or a free stay at a certain hotel. If you choose the right credit card deal, it can easily save you a substantial amount of money on everyday purchases. There is no reason to accept a credit card deal that doesn’t offer any reward program.
Small Credit Limit
Every credit card offer has a certain credit limit that shows the maximum amount of money that you’re able to spend in a given month on that card. It is never a good idea to max out your credit card; however having the flexibility that comes with a higher credit limit can come in handy in case of emergency. On top of this, having a higher credit card limit can help to improve your credit score due to the fact that credit scores factor in your credit utilization ratio, which is the ratio of used credit to unused credit. The bottom line is skip the deal if the card has a limit that is lower than $500.
High Penalties and Fees
Credit card companies tend to make a substantial amount of their money from fees and penalties. They can charge you a fee for such things as making advances, withdrawing money from the ATM, balancing your transfer, paying online or by telephone, etc. If there’s a way to make money from you, credit card companies tend to do it. Due to this, it’s critical that you always look at the fine print. If you discover that a credit card will charge you penalties or fees for all of the above things, especially the things that you partake in, then it’s recommended that you move on to the next deal.
Interest Rates That Are Variable
Credit card companies tend to trick you into thinking you’re getting a great deal with variable rates when in reality you will end up losing money. They will initially advertise an extremely low rate, but it will turn out to be a variable rate, which increases over time. You should look for credit cards that have a fixed interest rate, even if they are a little bit higher than variable rate cards. However, still be aware that some fixed rate credit cards can increase over time, and so always look at the fine print.