What to look for in credit card offers

By Lila Kallstrom

Informed consumers will find the best deal among credit card offers, but only if they know what to look for. Consumers are offered a variety of benefits for using credit cards. Low interest rates, travel points, accident insurance, cash advances. Yet how are consumers to ensure they are receiving the credit card and benefits that they need?

Responding to Mail Offers
Most consumers will receive offers and information from specific credit card companies such as CIBC or Capital One through the mail.Usually, credit card companies present their most appealing benefits through offers of low balance transfer rates. Often these offers are from credit card companies that you do not presently use. Therefore, you need to understand that these "limited time" offers will come again and again -- they are not a once-in-a-lifetime offer. Take the time to weigh the benefits and costs carefully before you opt for one.

Official Credit Card Issuer Web Sites
The interest rate on a credit card is the most important feature to consider when choosing a new credit card. You want to get the lowest posssible annual percentage rate for which you qualify (higher risk customers tend to get higher interest rates), preferably without an annual fee. Online lists of credit card interest rates will include the credit card issuer, interest rate, brand name, any annual fee and grace period. What's important to know is that not all credit cards are included on these sites. Do your credit card shopping at a site with a broad range of different types of cards or visit card card issuing bank websites directly.

Phone Solicitations
Some credit card companies will call you to make initial credit card/lower interest rate offers. MBNA asks what benefits you look for in a credit card. At the time of this writing, if a consumer answers that the lowest interest rate is preferred, MBNA will actually set your interest rate to 7.99 percent, which is lower than any of its advertised rates online.

Consider the Most Useful Benefits
Consumers should take advantage of deals on credit cards when the interest rate is as low as they can get at another bank. They should also find credit cards that offer benefits that are valuable to them. Different cards allow you to earn points toward merchandise, travel or cash. Sports credit cards, for example, offer points on specific sports merchandise. An Edmonton Oilers credit card, for instance, offers exclusive Oilers experiences such as:

• An Edmonton Oilers team-signed stick
• Autographed Edmonton Oilers jersey
• Two tickets to an Oilers home game with parking
• The opportunity to be the stick boy/girl for an Oilers game
• The chance to take an Oilers player to school.

College and university credit cards offer low annual introductory interest rates for students at 26 different universities across Canada. Career and professional credit cards offer benefits to nurses, physicians, lawyers and physiotherapists. Charity and other cause-related credit cards offer support and donations to the Canadian Wildlife Federation, Ducks Unlimited and Eco-Logique to acquire carbon offsets.

If consumers are properly informed, then they will find credit card offers that are the best fit for their lifestyles.

Article written by Lila Kallstrom

Published: June 8, 2009