How to Get a Good Deal on a Credit Card

We may be in a credit crisis, but that’s not stopping anyone from using their credit cards. In fact, that’s why we’ve gotten into the credit crisis to begin with. Again, that’s not stopping anyone. We live in a credit-obsessed world where the majority of people carry a balance month to month, instead of paying it off completely (which is most recommended). With all the problems associated with credit cards, and all the fees, everyone’s clamoring to get the best possible deal on a credit card.

Difficulty: Moderate

Instructions

Things You'll Need:

• Internet access
• A decent credit rating (600+)

1. Fix your credit rating. Though there are credit cards for bad credit, your best bet is to repair your credit rating first and then apply. You can find articles about repairing your credit on Ehow. Keep in mind that applying for several cards in a short period – six months or less – can have an adverse effect on your rating.

2. Determine how you’re going to be using the card before shopping around for a card. This will narrow down the type of card you’ll be looking for. So, for example, if you’re very interested in building up airline rewards points, you can look for mileage rewards cards.

3. Check these issues: introductory APR, long-term APR (after the introductory offer expires), annual fee, other fees, such as over the limit fee, and the grace period. This last one is the amount of time it takes for interest to be charged on a purchase. A longer grace period means lower interest.

4. Also check rewards plans – even if you’re not looking for a specific rewards plan. If the card has a good rewards point program, this could potentially offset what you lose in fee payments. So if you get a point for every dollar earned, this makes back what you lose in fees.

5. Now it’s time to look for a card. Online, there are several places to compare credit cards. A site like LowerMyBills.com is a good bet. The site has basically every type of card available. There are so many cards available in a certain category that it can be dizzying, but you should look to narrow it down by certain categories: low long-term APR, no annual fee, etc. Make side by side comparisons.

Tips & Warnings

• Remember that just because you apply for a card doesn’t mean that this is the card you’ll be offered. If you’ve got a low credit rating, don’t bother applying for a good-credit credit card because they’ll offer you a card with worse terms, possibly worse than the card you’d get if you applied directly for a bad-credit credit card.
• With all the online offers, there’s no reason to sign up for a credit card offer that comes in the mail. Instead, hunt down a better offer. Remember, “Pre-approved” does not necessarily mean that you’re approved for the exact card that comes in the mailer.