Guide to Credit Cards: How To Find Great Credit Card Deals
We've seen that many credit cards offer valuable rewards. But sometimes, credit card companies introduce even better special offers for limited periods of time, in an attempt to entice consumers to switch to their card. The credit card companies hope that once people have signed up, they'll continue to use the card (and to borrow money on the card) after the introductory offers have expired.
Here's an example. Recently, the AT&T Universal Cash Rewards credit card ran a special offer of 5% cash back on all purchases for a six month period, with the cash back bonus credited to your account immediately.
Offers like that are advertised on the Web. You can find them easily by searching for "credit cards", or by checking the ads on sites like this. (The ads are generated automatically and change with time.)
However, you need to watch out for two pitfalls with special offers on credit cards:
1 Offers often aren't as good as they seem from the ads. Sometimes the only way to clarify the real terms of a credit card is to call the card company or to request written literature. American Express is a great example: it offers a credit card with "Up to 5% Cash Back". The leaflet explaining the card promotes the 5% rate. But only in the fine print is it explained that most purchases only receive "up to 1.5%", unless you carry a balance on the card.
2 Card companies have been known to terminate offers early and without warning. The AT&T Universal Cash Rewards Card was supposed to rebate 5% of every transaction in cash for six months, but some customers found that AT&T reduced the cash-back rate to 1% without warning after only a couple of months. When customers complained, AT&T responded by demanding proof of the credit card offer which customers responded to. Surprising though it seems, even respectable companies seem to play the "bait and switch" game.
So if you find a great credit card deal by checking special offers advertised on the Web, make sure to print out a copy of the terms for future proof.
Next we'll discuss how credit cards impact your credit rating.
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