Make the Most of New Credit Card Deals With These 5 Tips

NEW YORK – August 28, 2021 – (Newswire.com)

If you are planning a large purchase, taking advantage of welcome offers and credit card promotions can be beneficial, especially if you earn rewards, qualify for a bonus, or if your card offers purchase protections or other benefits. .

Here are some tips for finding great credit card deals and smart ways to use your card for big purchases.

How to find the best credit card deals

When looking for a new credit card, there are a few things to look for to help you decide which offer is best for you. Here are some tips for finding the best credit card deals.

1. Take advantage of points or cashback match

Some credit cards offer a points or cash back matching program, which means the company automatically matches the rewards you earn at the end of the first year.

For example, if you earned $ 500 in cash back in your first year, that would add up to a total of $ 1,000.

While you don’t get this “delayed” bonus until the end of the first year of using the card, it can be very beneficial if you spend a lot of money on that credit card during the year, and the match can help you get the big buy faster. It also gives you more time to plan and prepare for your purchase.

2. Find the best welcome bonus

Many credit cards offer a welcome bonus, which means that when you open a new card, you earn additional rewards when you use your card. These can be cash back, points or miles. Typically, you must meet a minimum spend requirement within the first few months of opening your card to earn this bonus.

When comparing welcome bonus offers, be sure to pay attention to other information on the card, such as annual or other fees and other rewards. Also consider how much you need to spend and within what time frame to earn the bonus, and assess if this is feasible for you.

3. Compare the introductory APRs

The APR, or Annual Percentage Rate, is the annual rate charged on your credit card balance. It could also be called an interest rate.

Some credit cards offer introductory APRs, even as low as 0%, when you first sign up for a card. This means that you are paying 0% interest on your balance; however, this is usually only available for a limited time. And, you still have to pay back the money you borrow.

While an introductory 0% APR can be tempting, understand what the APR is after the introductory offer period is over. Sometimes the interest rate can be higher than the other cards available to you.

4. Look for a $ 0 fee

Some of the more common credit card fees include:

• Annual subscription
• Late payment fees
• Foreign transaction fees
• Balance transfer fees
• Cash advance fees
• Over limit fees

You may find that many credit cards offer an annual fee of $ 0 or other fees when you open a new card, although this is sometimes a limited time offer. Before choosing a credit card, compare their annual and other fees to make sure you don’t have to pay more in the future.

5. Use credit card offers for large purchases

Once you’ve found the right credit card deal for you and applied for and approved the card, it’s time to start using it.

However, there are a few things to keep in mind when it comes to using credit cards for large purchases.

• Keep an eye on your credit utilization rate. This is the amount you owe on your card divided by your credit limit. For example, if your credit limit is $ 10,000 and you have a balance of $ 5,000, your rate is 50%. A high usage rate can have a negative impact on your credit score. Therefore, if you make a large purchase with your card, be sure to pay most or all of the bill when it is due.
• Have a plan for the bill. While earning rewards like cash back rewards makes it tempting to spend a lot of money, you still need to have a plan to foot the bill. Avoid justifying purchases just because they earn you rewards or because you get a welcome bonus for using the card as this can quickly lead to overspending and debt.
• Stay in the introductory period. If you qualify for a card that has a $ 0 fee or 0% APR rate for a certain period, or a welcome bonus if you spend a certain amount in the first few months, be sure to make your purchase. during this launch period. Otherwise, you could be subject to higher interest rates or you could miss out on your welcome bonus.
• Take advantage of protection or purchasing advantages. Some card companies offer benefits when you use your credit card to make a large purchase, including extended warranties, purchase protection, return protection, travel insurance, and more. Before you buy, check if your card offers these benefits and if your purchase is eligible so that you can take advantage of them.
• Avoid impulse buying. If you have a plan for your spending, using your credit card offer can be beneficial. However, making a large impulse purchase can lead to overspending, debt, fees and penalties, and even take an emotional toll. Plan your purchase in advance and be smart about how you spend your funds.

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Make the Most of New Credit Card Deals With These 5 Tips