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Find the Great Credit Card Deal

Posted by in Finance: Credit & Debit Cards  ~  April 27, 2012 01:09:39 PM

Finding a great credit card deal can be easy if you know where and how to look. Almost every day there are new credit card offers, with company’s trying to “one up” the competition. And this is great for the consumer — with so many different cards competing on interest rates, rewards points and other perks, it is much easier today to get a good deal on a credit card than it was just a few short years ago.

But before you sign up for a new card, it is important to understand how credit card offers work. In this article we’ll guide you through the process of getting a great credit card deal, and what you should consider before signing on the dotted line.

First, you will want to consider the standard APR (annual percentage rate) of the card. Not the “introductory” APR, but the standard APR that will take effect as soon as the initial grace period is over. Otherwise it is possible to wind up being locked into a high annual percentage rate when the trial period is up.

Standard credit card annual interest rates vary from around 5-6% to more than 35%. Also, a card may use a fixed rate or a variable rate of interest. The majority of consumer cards today use a fixed rate, but you will want to read the back of the credit card application just to be certain.

Variable rates are usually not a good idea for a personal credit card, as they can often go up considerably, leaving you stuck with a high minimum monthly payment. A fixed rate card ensures you will never pay more than the stated rate on your credit card application.

Obviously, you will want to shop around among different companies before deciding on a credit card deal, as Annual Percentage Rates can be quite different from one company to the next. You’ll also want to consider any “perks” and extra services offered by the card. These can be important up to a point, but you should never choose a credit card offer based solely on these extras. Remember, the standard APR is always your main concern.

To get the best deal, look for a 0% APR promotion. The 0% rate will only apply for a limited time, but it can end up saving you a considerable amount of money while it lasts. Some companies offer a six-month grace period, but if you search a little deeper, you can occasionally find cards offering up to 24 months at 0% interest. If you find a deal like this — and the standard APR is good — jump on it!

The best strategy is to let the “cut-throat” competition between credit card companies work to your advantage. By comparing offers side by side, you are sure to find a great credit card deal that provides all of the benefits and perks you need.