Credit Card Offers: Navigating Through The Choices

Credit card offers aren't exactly a rare occurence. In fact, many people are bombarded by multiple credit card offers each and every day. The question is, how do you know which credit card offers are the good ones and which ones should be thrown in the trash (after being shredded of course)? Follow these seven bits of advice.

1. What Does "Pre-Qualified" Really Mean?

First things first -- when you get those credit card offers in the mail that say you're "pre-qualified," it does not mean that you've been approved for the credit card that is being offered. You still have to apply for the card (and have your credit history run) before you'll actually be approved.

Many people have gotten frustrated because they respond to a "pre-qualified" offer only to find out they're not really approved.

Don't take it personally. "Pre-qualified" credit card offers are nothing more than a marketing gimmick.

2. The Razzle, The Dazzle and Then The Punch

When you see credit card offers touting very low interest rates (or even no interest at all), try to remember that these are "teaser" rates that will eventually go up (and may go up drastically). The credit card offer may still be a good deal, but that all really depends on what the interest goes up to after the introductory period.

Before jumping to apply for a low-interest credit card offer, see what the interest rate is really going to be after the introductory period is over.

3. Keep The Perks In Perspective

Many credit card offers include perks such as points or cash back that can be earned with each purchase. Remember, these perks may not be as great as they first appear.

A credit card with rewards attached also usually has a higher interest rate attached as well. If you carry a high balance on your credit cards, those perks are going to cost you big time.

4. It's Not About the Prize

Some of the credit card offers we receive don't even come by mail -- they come during checkout at the local store. Oftentimes, these credit card offers have a one-time discount attached, such as 10 to 15 percent off your total purchase if you apply on the spot (and approval is instant as well).

If you think it's a good idea to open a credit card to get the discount and then close the account afterwards, that's really not such a great concept. A part of your credit score is determined by how long you keep relationships with your creditors. If you have a history of opening accounts and then quickly closing them, it's going to impact your creditworthiness in the eyes of lenders.

5. What You Shouldn't Settle For

The credit card industry is definitely competitive. Because of this, you should never respond to credit card offers that require an annual fee or a "processing" fee (unless you have problems with your credit history).

If a credit card company requires an annual fee or charges you for processing your application, go elsewhere for your credit card needs. There are a number of credit card companies who will welcome your business (and won't make you pay extra for the privilege).

6. Seek Them Out

If you're not happy with the credit card offers you're being solicited with, it doesn't mean there isn't a credit card out there to meet your needs. You may just need to look a little harder.

There are hundreds of different credit cards available and finding the one that is right for you may just be a matter of doing a little online research. Many consumers turn to the web to find the credit card offers that are perfect for them.

7. Seek and Destroy

After you have reviewed a credit card offer, what do you do with it? I'll tell you what you should be doing.

Make sure you shred each of the credit card offers you receive before throwing them in the trash or you may find yourself becoming the next victim of identity theft.

Those credit card offers that infest your mailbox are also an identity theft criminal's best friend. If you don't want those credit card offers falling into the wrong hands, make sure you dispose of them properly.

By taking the above advice into consideration when dealing with credit card offers, not only will you be able to find the credit card that's right for you, but you'll also be able to avoid making a mistake due to credit card confusion.

By: Max Anderson

What Are Charity Credit Cards?

You’ve heard the term “charity credit cards” but you may not have known what it meant. In short, a charity credit card is an affinity card that makes a small contribution to the charity of your choice every time that you use the card. Affinity cards aren’t just for stores, hotels, or airlines anymore. Today, many charities are joining in and reaping the benefits of these types of relationships.

Just so you know, an affinity card is one that is part of either the MasterCard or VISA network, but also bears the brand name of a store, hotel, airline, or other organization. You have seen the “Delta Air Miles” card and the “Disney Rewards Card” which allow you to accumulate points toward airline miles or kingdom stays respectively. Today, several charities are getting onboard and while you do get some rewards for yourself, you also reward the charity every time you charge.

Many charities are taking advantage of the affinity relationship including the following organizations:

World Wildlife Federation

Make-A-Wish Foundation

American Humane Society

American Cancer Society

National Audubon Society

Heart and Stroke Foundation of Canada

Mothers Against Drunk Driving

Scouts Canada

Muscular Dystrophy Canada

Each time you use your affinity card, the charity of your choice is a winner. However, please keep in mind several things before deciding whether to use an affinity card including:

--Avoid a card charging an annual fee. You’d be better off making a direct donation to the charity of your choice then putting up with an annual fee.

--Watch out for a higher than normal APR. Pay off your balance every month to avoid charges.

--In some cases your personal rewards for using the card are severely diminished when selecting an affinity card. If this doesn’t bother you, then continue as planned with the card of your choice.

Some charities are raking in millions of dollars per year with their affinity card, monies that are sorely needed to keep some organizations afloat. Check with your charity to make certain that they are satisfied with their affinity card.

Yes, an affinity card can be beneficial to you as well as to the charity of your choice. By charging most of your purchases on your card and paying off the card every month you can get the most out of your card and benefit an organization that helps others make a difference too.

By: Adam J. Heist