How to Understand Credit Card Offers

These days it seems like everywhere you turn there is another bank wanting to hand you a credit card. On the television, at the banks and even if your mailbox; every bank has a different credit card offer especially for you!

So which should you chose? And more importantly, what do all these offers mean?

0 Percent APR

You may notice this on many credit card application forms. But what does it mean? 0% APR means you will pay 0% interest on your annual payment rate. This is usually rewarded to new members for a limited time. The introductory 0% APR is often for your first year. Basically, this offer allows you to spend, spend, spend without worrying about the interest rates until next year.

Airline Miles Plans, Reward Points and Other Travel Promotions

Many people take advantage of the partnership between airplanes and credit cards. Basically, if you use your credit card often enough and acquire a certain amount of points, you can fly for free to some destinations. You can also use your points for hotel stays, car rentals and other travel needs.

There are three different offers available. An airline card lets you earn points toward free air travel on 250 airlines. A frequent flyer card lets you earn miles that will go into your frequent flyer account and a travel rewards card allows you to earn points of any type of travel and accommodation.

Some credit card companies offer 20,000 bonus reward points just for joining while others offer double points (2 points per 1 dollar spent). If you’re a traveler or frequent flyer, then this is the perfect offer for you.

Other reward points work on things besides travel including restaurants, certain shops and gas stations. Be rewarded for your speciality purchases with these great offers.

Cash Back Bonuses

Cash back bonuses work on different types of purchases. Basically they give you 2-5% back on certain purchases. Some credit cards offer 2% cash back on gas. Others offer 5% cash back on office supplies while others offer 5% cash back on certain retail shops. So, no matter what you plan on using your credit card for, you could be saving just by swiping.

Keep in mind that many credit card companies offer a combination of the above deals when signing with their company. So, no matter what you’re looking for, there is an offer catered directly to your needs.

Write to Julie Williams at julie@creditdonkey.com