Competition is present everywhere. Financial institutions and banks are in a rat race to get over their competitors by hook or by crook. The credit card market is no alien to this phenomenon prevalent in the financial market. The completion has turned into a tornado in the recent 15 years. The companies are well aware that making new customers can be either done by targeting those youngsters who have just got their salary account opened in banks or those who are already using credit cards of other banks. To grab those existing customers of other banks is what they are targeting to snatch off business from other firms. Companies use excellently seductive offers as bait for people so that they shift to their service. Viewing the scene from your side and through a customer’s benefit perspective, here are some worthy tips for you to be considered while shopping for a credit card.
How to Get Awesome Deals on Your Credit Card
Balance transfer is a philosophy most card companies are working on. They are going through cockfights with competitors to grab their existing customers. Balance transfer refers to an offer by card companies in which they give you an option to pay off the debts that you have with your existing card company and shift to their new card. For an example if you are using card A and you are paying 15% of interest on your debts on that card. Card B would provide you with an option to transfer your debts to their card and ask you no interest on the debt for next 6 months. You have got an additional 6 months time to pay off the debt and that too interest free. That might be something really attractive for most of you and for sure you may get your present card swapped with a new one.
However, all that glitters is not gold. The saying goes well even today and in every field. The new company may ask you to pay a small fee as a processing fee or so. This brought to your knowledge now it is your task to make a comparison between the amount you are going to save as interest after shifting to a new company and the amount you need to pay as fee. Possibilities are that –
- You miss a payment or you pay it late. They now have a chance to screw it up and make you tensed with their rates applied on the debt.
- You might not be able to pay off the debt when the interest they are charging is low and may fail to do it within the intro period. Here they get a chance and may charge you a really high rate of interest.
So, go through all the factors and come up with a decision that is in compliance with your needs and ability. Your debts should be in limit that you can reach within the initial period provided by the new company so as to prevent any excessive interest being charged on you. In case you are unable to do so, you can obviously move to a new card but this too has a negative aspect and that is about losing your credits you have earned with your old card. Those credit scores won’t be applicable and considered by other companies. Consider all the negative and positive factors and balance it well to come up with a really beneficial decision. This was just one out of many deals that you can get from a credit card company.