A recent study summarized that credit cards had a global saturation rate of 72.1%, with 33% of respondents reporting they held at least two credit cards. With numbers such as these, it’s clear that banks and credit card companies have mastered their business model, however, in the world of credit cards, these companies only win when you lose. However, it does not have to be that way.
Find a Card Which Can Reduce Other Costs Each Month
Instead of choosing the card with the lowest interest rate, search for a card which has agreements with services applicable to your everyday life. If your utility company rewards you with a discount each time you pay your bill using a particular card, and you will repay the full amount before the end of the month, you just found a way to reduce your utility bill.
Rewards Are King
You are going to use your card, that is a given, so be sure your credit card company will reward you for it. While airline miles can be the biggest drawcard, their conversation rate is poor. Search for a card which provides immediate benefits, such as monthly cinema tickets, cash-points which you can use when you want to treat yourself to a new style at a salon in Boston, free shipping on items purchased at certain online stores or even extended warranties for electronics and other items.
Be Wary of Yearly Fees
Fees are how credit card companies make a bulk of their money, especially the yearly fee. As your first year comes to an end, speak with your credit card company about waiving the fee. If they decline, search for another credit card option which is offering a free subscription and switch. Many card holders feel locked into their bank or credit card company, however, if you have not accumulated an enormous debt then you can quickly switch between companies as your needs change and to avoid fees.
A credit card which matches your needs and that can actually benefit you is out there; you just need to find it. As with all financial products, be sure to read the fine print closely and ensure that any of the benefits or fee waivers promised match your needs and will result in a win for you.